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Apple to Reach 40 Billion Dollar iPhone Production in India by FY26

Prime Highlights

  • Apple plans to expand its iPhone production in India to nearly $40 billion by FY26 with a target of meeting 80% of the demand in the U.S. and complete domestic demand.
  • The growth is in accordance with Apple’s overall strategy of shifting its manufacturing portfolio globally in the wake of supply chain disruptions globally.

Key Facts

  • Apple iPhone exports to India would reach $32–35 billion by FY26 from $17.5 billion in FY24.
  • Apple has surpassed its Production-Linked Incentive (PLI) scheme targets as the aggregate iPhone manufacturing in India has surpassed Rs 1.94 lakh crore over the last three years.

Key Background:

Apple Inc. is likely to substantially expand its iPhone manufacturing business in India with a value of nearly $40 billion by FY26. This is part of Apple’s larger attempt to diversify its manufacturing away from China and take advantage of India’s increasing manufacturing scale and the positive policy environment being pursued by the government of India. Apple intends to produce 80% of American demand for iPhone and meet all local demand in the Indian market by FY26. This is a huge increase in Apple’s Indian manufacturing footprint.

The rapid growth of the company is backed by India’s Production-Linked Incentive (PLI) scheme, which provides financial incentives to local manufacturing firms. The program has made huge leaps in taking Apple’s Indian supply chain lead with the behemoths like Foxconn, Pegatron, and Tata Electronics being at the epicenter of activity. Seizing control of the Wistron assembly lines by Tata Electronics, specifically, is a monumental step by an Indian company puncturing Apple’s supply chain globally.

Indian exports of Apple iPhones during FY24 crossed $12 billion, and the U.S. emerged as the biggest importer of the phones. Indian iPhone manufacturing by Apple is now a key component of its global value chain, as Indian production units get consolidated.

Further, Apple’s production of the iPhone 15 series domestically—specifically, iPhone 15 and iPhone 15 Plus models—has been an important step in this direction since these phones were released in India on the same date when these phones were made available globally. This once more indicates India’s growing importance for Apple’s business strategy as well as a base of high-tech products for manufacturing.

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