Apple’s $6 billion India iPhone exports signal strategic shift from China

Apple Inc.’s iPhone exports from India have surged by nearly a third in the first half of the current fiscal year. From April through September, the company exported around $6 billion worth of iPhones assembled in India, reported Bloomberg, setting a robust pace that could see annual exports exceed $10 billion by the fiscal year’s end.

The increase in iPhone exports from India reflects Apple Inc.’s ongoing efforts to shift a portion of its manufacturing outside of China. India’s favourable production-linked incentives and skilled workforce have catalyzed Apple’s rapid expansion in the country, which has become integral to the company’s global manufacturing strategy.

Apple’s decision to broaden its supplier base beyond China, amid growing U.S.-China tensions, has aligned well with India’s 'Make in India' initiative, a national campaign under Prime Minister Narendra Modi's government to bolster domestic production.

The primary manufacturing partners in India include Taiwan’s Foxconn Technology Group and Pegatron Corp., along with India’s Tata Electronics. Foxconn’s Chennai-based plant remains Apple’s largest supplier in the country, contributing around half of India’s iPhone exports. Tata Electronics, an emerging player in Apple’s supply chain, exported nearly $1.7 billion of iPhones from its facility in Karnataka, according to the Bloomberg report, a significant growth since Tata acquired the factory from Wistron Corp. last year.

iPhone exports to US

India’s smartphone exports, led by iPhones, have now become the country’s largest product category exported to the United States, according to the Union ministry of commerce and industry. In the first five months of the fiscal year, these exports were valued at $2.88 billion, compared to a modest $5.2 million five years ago when Apple’s manufacturing presence in India was minimal.

New Apple stores in India

"We're thrilled to build our teams as we plan to open more stores in India because we're inspired by the creativity and passion of our customers across this country,” Deirdre O'Brien, Apple’s senior vice president of retail, said in a statement.

Apple has ramped up local production with its first-ever “made in India” iPhone 16 Pro and iPhone 16 Pro Max series. The company said that the iPhone 16 Pro and Pro Max will be available for local customers and exported to select countries worldwide.

Despite its rising presence, Apple holds just under 7% of India’s smartphone market, where Chinese brands like Xiaomi, Oppo, and Vivo maintain dominance.