Apple Beefs Up iPhone Production in India to Cater to US Demand
Indian suppliers stand to gain up to $14 billion in business due to increased demand for iPhones, according to a report.
Gearing up to meet escalating demand for its flagship device, Apple is ramping up iPhone production in India. As per analysts speaking to Moneycontrol, the tech giant is progressively upscaling its manufacturing efforts to satisfy soaring sales in the United States. With the June quarter already showing promising figures of iPhones worth $12-14 billion from India, Apple intends to source the bulk of its US-bound iPhones from domestic factories for the first time.
India Steps Up as Major iPhone Supplier to the US
Established partners like Foxconn and Tata Electronics are now well-equipped to fulfill Apple's requirements. If current trends continue, India may produce around $40 billion worth of iPhones in FY26, with 80% of that production earmarked 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," explained one analyst. "This figure is predicted to swell due to consistent consumer demand."
As US tariffs on Chinese goods escalate, Apple has chosen to divert iPhones destined for markets such as the UK, Japan, and Europe to the US. This adjustment is largely in response to the mounting US tariffs on Chinese goods.
Domestic Market also Expanding
In 2024, Apple assembled 40-45 million iPhones in India, accounting for approximately 18-20% of its global output. Out of these, around 14-15 million were exported to the US, 13 million headed to other markets, and the remaining 12 million were sold locally.
To achieve growing export targets, Apple will need to significantly boost iPhone production in India from the current $22 billion to at least $32-35 billion, while catering to $5-8 billion worth of domestic demand.
Capacity Expansion Underway
Apple's suppliers are actively scaling up their operations. Tata Electronics has kick-started the assembly of older-generation iPhones at its new facility in Hosur, while Foxconn's impending Bengaluru facility, constructed with a colossal $2.8 billion investment, is expected to become the company's second-largest production site globally. The Bengaluru facility will play a crucial role in increasing iPhone exports from India.
iPhone Exports to the US Hit Record Levels
Statistics reveal that 98% of iPhones exported from India in March were bound for the US, skyrocketing from 84% in February. Primarily handled by Foxconn, this production surge was reflected in the export figures, with an FOB value of ₹48,000 crore ($480 million) in the March quarter, as compared to ₹28,500 crore ($285 million) a year earlier.
With a favorable policy environment, burgeoning local capabilities, and geopolitical pressures driving the shift away from China, India is rapidly establishing itself as a critical component in Apple's global supply chain.
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Source: [1], [2], [3], [4]
Enrichment Data:
### Overall:Apple's Increased iPhone Production in India
Apple has significantly expanded its iPhone production in India through several strategic moves and partnerships:
- Partnerships and Expansion: Apple and its suppliers, such as Foxconn and Tata Electronics, have expanded their operations in India. Foxconn's plant in Tamil Nadu handles a significant portion of Apple's Indian iPhone assembly, while Tata Electronics has acquired Wistron's operations and controls Pegatron's production [2][3].
- New Plants and Capacity: New plants, including one by Tata Electronics in Hosur and another by Foxconn in Bengaluru, are either operational or set to commence production soon. The Bengaluru plant, valued at $2.6 billion, is expected to create 50,000 jobs at full capacity and will produce iPhone models like the 16 and 16e [1][2].
- Rapid Growth: In the fiscal year ending March 2025, Apple assembled $22 billion worth of iPhones in India, marking a 60% year-over-year increase. This growth means that around 20% of the world's iPhones are now made in India [2][3].
- Apple aims to source the majority of its US-bound iPhones from domestic factories in India for the first time, following a rise in demand.
- Established partners like Foxconn and Tata Electronics are scaling up their operations in India to satisfy Apple's longer-term iPhone manufacturing requirements.
- With the current trend continuing, India may produce around $40 billion worth of iPhones in fiscal year 2026, with 80% earmarked for export to the US.
- To achieve these growing export targets, Apple will need to boost iPhone production in India from the current $22 billion to at least $32-35 billion.
- The new Foxconn facility in Bengaluru, India, constructed with a $2.8 billion investment, is expected to become the company's second-largest production site globally and play a crucial role in increasing iPhone exports from India to the US.
