Apple’s iPhone Production in India May Hit $70 Billion Over 5 Years Amid Export Growth: Report

Apple’s iPhone production in India is expected to exceed $25 billion in FY26, making it the highest annual value during the government’s production-linked incentive (PLI) scheme for smartphones, as per news reports.  

Vendor data submitted to the government suggest this would be about 20% higher than FY25, when production stood at $21 billion, including units sold within India. FY26 is estimated to account for around 36% of the total iPhone output value generated during the five-year scheme, which concludes at the end of March. 

5-Year Output Nears $70 Billion 

Between FY22 and FY26, iPhones produced in India are expected to reach a cumulative value of around $70 billion on a freight-on-board (FOB) basis. 

Production began at a relatively low base. Output was about $2.5 billion in FY22, the first year of the scheme. It increased to $7.5 billion in FY23 and $13.8 billion in FY24, before rising further in the following years. 

Much of the expansion in local manufacturing capacity has been carried out by Apple’s contract manufacturers Foxconn and Tata Electronics. 

Exports Form Majority of Output 

Exports have accounted for a large portion of the production value. Vendor submissions indicate that around 70% of the cumulative output, nearly $50 billion, came from shipments of India-made iPhones to overseas markets. 

Trade data show a sharp rise in shipments to the United States. Between April and December FY26, India’s smartphone exports to the US, largely consisting of iPhones, increased 182%, rising from $5.04 billion to $14.1 billion. 

Tariff Changes Influenced Export Volumes 

A temporary tariff gap also affected export flows during the year. In April last year, the United States imposed a 20% fentanyl-linked tariff on imports from several countries, including China, while India’s exports continued to enter without duty. 

This provided a cost advantage despite estimates that India’s manufacturing costs remain 10-14% higher than China’s. The difference has partly been offset by financial incentives of around 4-6% under the PLI scheme. 

Read More: Adobe CEO Shantanu Narayen to Step Down After 18 Years Amid AI Era Concerns! 

Conclusion 

The rise in exports has played a key role in increasing iPhone production in India during the PLI period. With the scheme nearing completion, any decision on its extension could affect future production levels and export trends. 

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