Apple is reportedly gearing up to source the majority of iPhones sold in the US during the April–June quarter from its Indian factories. With demand pegged between $12 billion and $14 billion just for the quarter, this marks a major shift in Apple’s global production strategy.
Analysts told Moneycontrol that Foxconn and Tata Electronics are well-positioned to meet this demand from their facilities in India. If this momentum continues, India-made iPhones could be worth nearly $40 billion by value in FY26 — with as much as 80% of that output likely heading to US customers.
For context, Apple sold more than 11 million iPhones in the April–June quarter of 2024, with the average selling price estimated around $1,100. That puts the value of US demand at approximately $12.1 billion — and that's during Apple’s typically weakest quarter.
To support the shift, Apple is reportedly rerouting iPhones previously meant for markets like the UK, Japan, Turkey, and several European nations to the US. Some of these changes could involve tweaking existing models to better suit US market preferences.
Tata Electronics’ newly operational plant in Hosur is already assembling older-generation iPhones, and Foxconn’s $2.8 billion factory in Bengaluru is expected to start production soon. Industry sources say this new Foxconn facility — the second-largest outside China — will be central to Apple's export plans from India.
The India Cellular and Electronics Association (ICEA) reported that iPhones worth ₹48,000 crore (about $480 million at freight-on-board value) were exported from India in the March quarter. This is up from ₹28,500 crore in the same period last year.
FOB (freight on board) value refers to the production and shipping cost until the point of export. It’s a far cry from the final retail price consumers pay — often several times higher — once marketing, distribution, and retail markups kick in.
Apple is estimated to have manufactured between 40 and 45 million iPhones in India during 2024, which accounts for roughly 18 to 20% of its total global iPhone output. Of this, about 14 to 15 million units were shipped to the US market, while 13 million were sent to other international destinations. Around 12 million iPhones were sold within India itself, indicating a steadily growing local appetite for Apple products.
To meet its upcoming targets, analysts suggest that Apple would need to significantly ramp up its production capabilities in India. The total production value, which currently stands at around $22 billion, may have to rise to nearly $40 billion over the next year. This would require a sharp increase in exports, which are projected to double from the present $17.5 billion to somewhere between $32 and $35 billion.
At the same time, the Indian market is also expected to play a larger role in Apple’s growth strategy. iPhones worth ₹40,000 crore to ₹65,000 crore — or approximately $5 to $8 billion — could be sold within India alone, reflecting the country’s rising consumer demand for premium smartphones.
