iPhone demand making $14 billion opportunity for Indian manufacturers: Report
To meet growing export targets, Apple will need to increase iPhone production in India.
Apple is rapidly increasing iPhone production in India to meet soaring demand from the United States, according to analysts speaking to Moneycontrol. With the June quarter already on track to deliver iPhones worth $12–14 billion from India, Apple is expected to source the majority of its US-bound iPhones from Indian factories for the first time.
Indian factories ready to supply majority of US iPhones
Production partners Foxconn and Tata Electronics are now well-positioned to fulfil Apple’s supply requirements. Analysts estimate that if current momentum continues, India could produce nearly $40 billion worth of iPhones by value in FY26, with 80% of that output intended for export to the US
“Over 11 million iPhones were sold in the April–June quarter of 2024 with an average selling price (ASP) of $1,100, translating to $12.1 billion in value,” one analyst said. “This figure is expected to rise further given consistent demand.”
According to industry officials, Apple has begun rerouting iPhones originally manufactured for markets including the UK, Japan, and Europe to the US This shift is largely a response to increasing US tariffs on Chinese goods.
Domestic market also expanding
In 2024, Apple produced 40–45 million iPhones in India, representing around 18–20% of its global output. Of these, approximately 14–15 million were shipped to the US, 13 million to other markets, and 12 million were sold domestically.
To meet growing export targets, Apple will need to increase iPhone production in India from the current $22 billion to at least $32–35 billion, while serving $5–8 billion worth of local demand.
Capacity expansion underway
Apple’s suppliers are actively scaling up operations. Tata Electronics has commenced assembly of older-generation iPhones at its new factory in Hosur, while Foxconn’s upcoming Bengaluru facility, built with a $2.8 billion investment, is set to become the company’s second-largest production site globally. It will play a pivotal role in expanding iPhone exports from India.
iPhone exports to the US hit record levels
According to S&P Global, 98% of iPhones exported from India in March were destined for the US, a sharp rise from 84% in February. Most of this production was handled by Foxconn. ICEA data shows exports with a freight-on-board (FOB) value of ₹48,000 crore ($480 million) in the March quarter, compared to ₹28,500 crore ($285 million) a year earlier.
While the FOB price of an iPhone may range from $300–$500, depending on the model, the final retail price can be two to three times higher, accounting for global logistics, marketing, and taxes.
Apple CEO Tim Cook recently confirmed that the company expects India to be the country of origin for most iPhones sold in the US in the June quarter. Meanwhile, production of iPads, MacBooks, and accessories is being routed through Vietnam.
With a favourable policy environment, growing local capabilities, and geopolitical pressures driving diversification away from China, India is fast emerging as a key node in Apple’s global supply chain.
