Will Apple Manufacture iPhones Worth Rs 3.36 Lakh Crore in India by FY26?
Click to start listening
Synopsis
Apple's ambitious plan to manufacture iPhones worth Rs 3.36 lakh crore in India by FY26 is a significant step in reshaping its global supply chain. The company is responding to geopolitical shifts and increasing tariffs by enhancing its production capabilities in India. Learn how this impacts both the US and Indian markets.
Key Takeaways
- Apple plans to manufacture iPhones worth Rs 3.36 lakh crore in India by FY26.
- The company aims to meet 80% of US iPhone demand from India.
- Apple's strategy shifts focus from China to India and Vietnam.
- Smartphones are India's top export category, with Apple leading at 70%.
- New retail stores are planned to enhance Apple's presence in India.
New Delhi, May 5 (NationPress) Apple is projected to significantly boost its iPhone production in India, aiming for nearly $40 billion (approximately Rs 3,36,000 crore) by the conclusion of FY26. This strategic move is part of the tech giant's efforts to shift its global supply chain away from China due to escalating geopolitical tensions and trade tariffs.
Industry estimates suggest that this transition will allow Apple to fulfill 80 percent of its iPhone demand in the US, while also addressing the expanding domestic market in India.
This announcement follows comments made by Apple CEO Tim Cook during the company's Q2 2025 earnings call, where he indicated that the majority of iPhones sold in the US during the April-June quarter would be produced in India.
“For June, we anticipate that the majority of iPhones sold in the US will originate from India,” Cook stated, referencing the reciprocal tariffs imposed by the US government that are influencing production strategies.
This shift is a tactical response to tariffs associated with the country of origin of products.
While China will remain the source for most Apple products sold outside the US, India and Vietnam are emerging as significant manufacturing centers.
For example, almost all iPads, Macs, Apple Watches, and AirPods sold in the US will now be sourced from Vietnam, Cook pointed out.
Apple expects a $900 million impact from US tariffs in the current quarter, although the precise long-term effects are still uncertain.
“We cannot accurately assess the impact of tariffs, as we are unsure of potential future actions,” Cook remarked during the call.
This transition also signifies Apple’s growing investment in India’s electronics manufacturing sector, which has experienced a significant surge under the government’s production-linked incentive (PLI) scheme.
As of FY25, smartphones have become India’s leading export category, reaching a record Rs 2 lakh crore in value.
Apple accounted for the largest share, with iPhones representing nearly 70 percent of total smartphone shipments from the country.
In addition to expanding manufacturing, Apple is enhancing its presence in India by planning to open more retail stores later this year, adding to the two already operational.
The company recently achieved a quarterly sales record in the Indian market, showcasing robust momentum across its products and services.
Point of View
Apple's decision to ramp up iPhone production in India signifies a pivotal moment in the country's electronics manufacturing landscape. This strategic shift not only aids in mitigating the risks associated with reliance on China but also showcases India's emerging role as a global manufacturing hub. It aligns with the government's initiatives aimed at boosting local production and export capabilities, benefiting the economy significantly.
NationPress
09/05/2025
Frequently Asked Questions
Why is Apple increasing production in India?
Apple is increasing production in India to meet rising demand in the US and to reduce dependency on China amid geopolitical tensions and trade tariffs.
What is the projected value of iPhones Apple plans to manufacture in India?
Apple aims to manufacture iPhones worth approximately $40 billion, equivalent to Rs 3.36 lakh crore, by the end of FY26.
How much of the US iPhone demand will be met by India?
India is expected to meet 80 percent of the US iPhone demand as part of Apple's new production strategy.
What impact will US tariffs have on Apple?
Apple anticipates a $900 million impact from US tariffs in the current quarter, though long-term implications are still uncertain.
Will Apple continue to manufacture in China?
Yes, while India is emerging as a key manufacturing hub, China will still be the origin for most Apple products sold outside the US.
