Apple to scale iPhone production in India to $40 billion by FY26 amid shift from China

The development follows Apple CEO Tim Cook’s recent statement during the company’s Q2 2025 earnings call, where he disclosed that most iPhones sold in the US during the ongoing April–June quarter would be manufactured in India.

New Delhi: Apple is expected to ramp up its iPhone production in India to nearly $40 billion (about Rs 3,36,000 crore) by the end of FY26, as the tech giant continues to shift its global supply chain away from China amid growing geopolitical tensions and trade tariffs.

According to industry estimates, this move will enable Apple to meet 80 per cent of its iPhone demand in the US and cater fully to India’s growing domestic market.

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The development comes close on the heels of Apple CEO Tim Cook’s statement during the company’s Q2 2025 earnings call, where he revealed that the majority of iPhones sold in the US in the current April-June quarter would be made in India.

“For June, we do expect the majority of iPhones sold in the US will have India as their country of origin,” Cook said, citing reciprocal tariffs imposed by the US government that are reshaping production strategies.

This pivot is a strategic response to the tariffs that are tied to the country of origin of products.

While China will continue to be the origin for most Apple products sold outside the US, India and Vietnam are emerging as key manufacturing hubs.

For instance, almost all iPads, Macs, Apple Watches, and AirPods sold in the US will now come from Vietnam, Cook noted.

Apple anticipates a $900 million impact from US tariffs in the current quarter, though the exact long-term implications remain uncertain.

“We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions,” Cook added during the call.

This shift also reflects Apple’s deepening investment in India’s electronics manufacturing sector, which has seen a remarkable boom under the government’s production-linked incentive (PLI) scheme.

In FY25 so far, smartphones became India’s top export category, touching a record Rs 2 lakh crore in value.

Apple was the largest contributor, with iPhones making up nearly 70 per cent of the total smartphone shipments from the country.

In addition to expanding manufacturing, Apple is doubling down on its presence in India with plans to open more retail stores later this year, adding to the two already operational.

The company recently set a quarterly sales record in the Indian market and reported strong momentum across products and services.