Apple Inc. has begun a significant realignment of its global manufacturing strategy, shifting a major chunk of its iPhone production from China to India. In April 2025, this shift translated into a dramatic 116 per cent surge in iPhone exports from India, amounting to over ₹17,219 crore, as per data filed by Apple’s three contract manufacturers with the Indian government.
This increase marks a major leap from the ₹7,971 crore exported in April 2024 and underscores India’s growing importance in Apple’s global value chain.
During its second-quarter earnings call, Apple CEO Tim Cook announced that, starting this quarter, most iPhones for the US market would be shipped directly from India. In line with this, multiple plane loads of iPhones were flown from Chennai to Chicago throughout April.
Traditionally, the April–June quarter witnesses the lowest seasonal sales for Apple globally. However, with India now fulfilling US export orders, both production and shipments saw an atypical spike during this period.
Apple began assembling iPhones in India three years ago. In April 2023, Apple’s vendors produced iPhones worth ₹8,772 crore, with exports accounting for around ₹4,987 crore—about 57 per cent of total production.
In April 2024, production increased 24% to ₹10,894 crore, with 73%—roughly ₹7,971 crore—shipped abroad. Fast forward to April 2025, and the numbers almost doubled again. Total production touched ₹21,400 crore, with 81%, or approximately ₹17,300 crore, earmarked for exports, primarily to the US.
Read More: Apple Mulls to Shift all US-Bound iPhone Assembly to India by 2026.
Apple’s increased export activity began accelerating in December 2024, as trade tensions and reciprocal tariffs came into force globally. With the US imposing a 20% duty on smartphones imported from China, Apple has sought alternative production bases.
India offered a window of opportunity, currently enjoying zero tariffs on smartphone exports to the US for three months. Even under a projected baseline tariff of 10%, India remains more cost-efficient than China for Apple’s US-bound shipments.
If Apple were to meet its entire US iPhone demand from Indian factories, the production requirement would more than double within the next 18 months, from ₹1.89 trillion ($22 billion) to ₹3.5 trillion ($40 billion).
Out of this, ₹3.1 trillion ($35 billion) would be destined for export, with the rest supplied domestically. Given that the US iPhone market is valued at roughly $40 billion annually, this would be one of the fastest expansions by any manufacturer in India’s export history.
However, such an ambitious scale-up demands robust support in the form of tax reforms, improved tariff policies, and upgraded industrial infrastructure. A recent NITI Aayog report on global value chains points out that India still faces structural bottlenecks in these areas.
To further cement India’s position in Apple’s supply chain, a bilateral trade agreement between India and the United States is reportedly in its final stages. If finalised, it could offer India long-term preferential treatment on exports, potentially removing or minimising tariff risks permanently.
This strategic shift by Apple not only demonstrates confidence in India’s manufacturing capabilities but also reflects a broader trend of supply chain diversification among global tech giants.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 12, 2025, 3:21 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
