India is quickly becoming a key location in Apple's international supply chain, particularly due to changing trade policies and U.S. tariff pressures. Apple's manufacturing allies—Foxconn and Tata Electronics—are ramping up production in India, shipping billions of dollars' worth of iPhones to U.S. markets. India is expected that in iPhones will be exported nearly $ 40 billion by the close of the present fiscal year, which is sure to constitute a remarkable turnarguements in Apple's sourcing strategy.
With more than 80 percent of iPhones manufactured locally destined for the U.S., India is no longer merely a regional production hub—it is emerging as a key export behemoth in consumer tech.
Apple Increases Exports Despite Tariff Changes
Spurred by U.S. tariffs put in place under Donald Trump, Apple has stepped up its export shipments from India. In the June quarter, Foxconn and Tata Electronics, the contract manufacturer, are said to be the drives behind the market supplying of the shipments number $ 12-14 billion. The way things stand, India might well serve as a location from which $40 billion of iPhones are to be distributed in the fiscal year 2026. Currently, 80 out of every 100 iPhones produced in India are designated for the U.S. market.
Apple posted sales of 11 million iPhones during the June quarter of 2024. At an average price per unit of $1,100, this segment alone contributed more than $12 billion. Interestingly, this quarter saw Apple's lowest sales numbers, indicating ample scope for growth in the coming quarters.
India's Role in Apple's Global Supply Chain Expands
Tim Cook also recently recognized increasing Indian influence over Apple's production plan. Much of the iPhones sold in America are now put together in factories in India. Meanwhile, any other additional products of Apple such as MacBooks, iPods, Apple Watches, and AirPods will be kept in Vietnam as they were before.
Indian-made iPhones originally were exported to nations such as the UK, Japan, and Turkey. But export plans now focus on filling the booming U.S. demand. As a result, Apple and its partners are in the process of expanding. A new factory in Hosur has been opened by Tata Electronics, with an emphasis on older iPhone models, and Foxconn is committing $2.8 billion to a Bangalore plant—its largest iPhone factory outside China.
Production Scale-Up Seeks to Fulfill U.S. Demand
India manufactured 40 to 45 million iPhones during the previous year, comprising about 20% of Apple's worldwide sales. 15 million units from the production run were sent to the United States, 13 million to other countries, and 12 million found their place on the Indian market. With the diversion of shipments and increased production, Apple seeks to substantially boost the number of India-produced iPhones entering the U.S.
In order to support this strategy, Apple's Indian allies are quickly adding capacity. The new Foxconn plant in Bangalore will start operations shortly, with current plants dedicated to producing both newer and older iPhone models. These efforts reinforce Apple's intention to decrease reliance on China while serving global demand more effectively.
India Becomes a Strategic Export Hub
In March, 98% of the total iPhones manufactured in India exported to the U.S., reaching approximately 3.1 million units. It's a follow-up on a robust export in February when 84% of production went to the U.S. market. The figures point towards a strategic movement, where India becomes the main iPhone provider for the U.S.
This growth is a milestone for Apple and India's electronics manufacturing sector. With more infrastructure coming up and supply chains settling, India's contribution is likely to go beyond smartphones, ultimately covering a wider array of Apple products.
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