Rerouting iPhone exports to the US, Apple shifts focus to India, creating a $14 billion Q1 opportunity and boosting India’s role in global tech manufacturing.
Apple is set to channel a major portion of iPhones made in India to the US market during the June quarter. According to industry analysts, it could open up a lucrative $12–14 billion opportunity for Indian manufacturers such as Foxconn and Tata Electronics. This marks a shift from previous export destinations, including Europe, the UK, Japan, and Turkey.
The move is part of Apple’s strategy to reduce reliance on Chinese manufacturing amid rising US tariffs. Analysts forecast that if this trend continues, India’s iPhone production could hit nearly $40 billion by FY26, with about 80 per cent of output earmarked for the US.
In Q2 2024, over 11 million iPhones were sold in the US, with an average price of $1100, valuing the market at over $12 billion. Apple CEO Tim Cook confirmed the company aims to source most iPhones sold in the US this quarter from India. Meanwhile, other Apple products like iPads and MacBooks will be primarily made in Vietnam.
India produced around 40–45 million iPhones in 2024, comprising 18–20 per cent of Apple’s global output. Of this, 14–15 million were shipped to the US. India’s iPhone exports would need to double from $17.5 billion to around $32–35 billion to meet future targets.
To support this ramp-up, Foxconn is investing $2.8 billion in a new Bengaluru plant, and Tata Electronics has begun operations at a new facility in Hosur. In March alone, 98 per cent of Apple’s Indian iPhone exports—3.1 million units—were destined for the US.
The redirection is expected to make the April–June period a record quarter for Apple in India, both in production and exports.
