Apple is rapidly scaling up its iPhone manufacturing operations in India, with plans to source the majority of iPhones for the U.S. market from Indian factories in the June quarter of 2025. According to analysts, Foxconn and Tata Electronics facilities in India are poised to handle iPhone demand valued between 12 billion dollars and 14 billion dollars during this period, Moneycontrol reported.
Industry experts estimate that if the current production momentum continues, India could contribute nearly 40 billion dollars worth of iPhones by value in FY26. Around 80 per cent of this output is expected to be shipped to the U.S. market while also meeting the entirety of India’s growing domestic demand.
"Over 11 million iPhones were sold globally in the April-June 2024 quarter, with an average selling price of 1,100 dollars —translating to a value of approximately 12.1 billion dollars," said an analyst, who added that despite being Apple’s traditionally weakest quarter, sales in terms of value are expected to exceed 12 billion dollars.
Apple CEO Tim Cook recently stated that the company expects a majority of iPhones sold in the U.S. during the June quarter to originate from India. Meanwhile, Apple’s other flagship products—iPads, MacBooks, Apple Watches, and AirPods—will continue to be manufactured in Vietnam.
To achieve these goals, Apple has begun rerouting shipments of India-made iPhones—initially meant for countries such as the UK, Japan, Turkey, and several European nations—to the U.S. market. This strategy is a response to rising U.S. import tariffs, with India positioned as a key buffer through enhanced local manufacturing.
To meet its ambitious production targets, Apple aims to nearly double its iPhone export value from 17.5 billion dollars to 32 billion dollars and 35 billion dollars while catering to a domestic market projected to consume 5–8 billion dollars worth of iPhones.
In 2024, Apple manufactured approximately 40–45 million iPhones in India, accounting for 18–20 per cent of its global production. Of these, about 14–15 million units were shipped to the U.S., 13 million to other international markets and 12 million were sold domestically.
Foxconn and Tata Electronics are already scaling up production capacity. Tata’s new iPhone assembly unit in Hosur is operational, and it focuses on older iPhone models. Foxconn, meanwhile, is setting up a second major iPhone production hub in Bengaluru with a 2.8 billion dollar investment, which will significantly boost exports once operational.
Data from the India Cellular and Electronics Association (ICEA) reveals that iPhone exports from India touched Rs 48,000 crore (approximately $480 million) in the March 2025 quarter, up from Rs 28,500 crore ($285 million) in the same period a year earlier. Most of the March exports were handled by Foxconn, with 98 per cent of the shipments—around 3.1 million units—destined for the U.S., according to S&P Global Market Intelligence.
iPhone's freight-on-board (FOB) value, which reflects manufacturing and shipping costs before export, typically ranges from 300 to 500 dollars, depending on the model. However, final retail prices often reach 700 dollars to 1,500 dollars, marking a significant markup.
With increased capacity and shifting supply chains, India is fast emerging as a cornerstone in Apple’s global manufacturing strategy, particularly for the U.S. market
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