Introduction
Apple has achieved a groundbreaking milestone in India, marking over $50 billion in iPhone exports by December 2025, a mere four years after entering the government’s Production Linked Incentive (PLI) initiative.
This accomplishment signifies a transformative evolution in Apple’s global supply chain, establishing India not merely as an assembly locale but as a pivotal manufacturing center.
Reports from Domain-b, The Economic Times, Times of India, and Gadget Hacks indicate that Apple’s approach in India is primarily guided by export growth, high-end device production, and proactive geopolitical risk management.
What commenced as a diversification effort has metamorphosed into one of the most rapid manufacturing escalations in Apple’s history.
5 Key Takeaways at a Glance
- Apple exported over $50 billion worth of iPhones from India by December 2025, just four years after entering the PLI scheme.
- iPhone exports reached nearly $16 billion in the first nine months of FY26, demonstrating robust growth.
- India is now exporting Apple components to China and Vietnam, reversing conventional supply chain dynamics.
- iPhones account for approximately 75% of India’s smartphone exports, positioning mobile devices as the top export category in FY25.
- India could manufacture 25% of global iPhones by 2025, increasing to 30% by 2027, as Apple reallocates U.S. supply away from China.
Apple’s $50 Billion Export Milestone: Why It Matters
Union IT Minister Ashwini Vaishnaw has confirmed this historic achievement, underscoring a sixfold increase in electronics production over the past 11 years under the Make in India initiative. Apple’s success is particularly noteworthy within this broader context.
Crossing the $50 billion threshold in iPhone exports carries significant implications for three primary reasons:
- It evidences that India is capable of high-volume, premium electronics manufacturing.
- It legitimizes the PLI scheme as a policy aimed at fostering exports, rather than merely substituting domestic production.
- It accelerates Apple’s efforts to mitigate supply chain risks associated with China.
In stark contrast, Samsung managed to export approximately $17 billion worth of devices over five years under the PLI program from FY21 to FY25. Apple’s near threefold greater export value in a shorter time frame underscores the rapidity and scale of its Indian ascent.
From Assembly Line to Export Engine
Initially, Apple’s focus in India revolved around assembling older iPhone models for local markets. However, that chapter has concluded.
Today:
- Most iPhones manufactured in India are now earmarked for export.
- Production is largely dominated by premium models.
- Export volumes vastly surpass domestic sales.
As reported by Domain-b, mobile phones emerged as India’s largest export category in FY25, primarily driven by iPhone sales. Approximately 75% of India’s smartphone exports now consist of Apple devices, highlighting a remarkable brand concentration.
This export-centric approach distinctly differentiates Apple from other smartphone manufacturers who primarily cater to the local market.
A Quiet but Crucial Shift: India Exporting Components to China
One of the most indicative signs of India’s burgeoning role involves not merely finished iPhones, but also components.
As reported by The Times of India, India has commenced exporting electronic components to China and Vietnam for various Apple products, including:
- Macs
- AirPods
- Apple Watch
- Apple Pencil
- iPhones
This development signifies a noteworthy reversal of traditional supply chains, with India now supplying to Apple’s global manufacturing network instead of solely assembling final products.
Apple’s Manufacturing Footprint in India Today
Apple’s current manufacturing framework in India encompasses:
- Five major assembly plants
- Three operated by Tata Group entities.
- Two are operated by Foxconn.
- Around 45 component and supplier companies.
- Facilities are distributed across Tamil Nadu and Karnataka.
The expanding role of the Tata Group is particularly noteworthy, signaling Apple’s commitment to forge long-term manufacturing partnerships anchored in India, rather than merely engaging in short-term contracts.
Why Apple Is Willing to Pay More to Manufacture in India
According to Gadget Hacks, manufacturing costs in India are:
- 5–8% higher than those in China.
- Potentially escalating to 10% in specific scenarios.
Nevertheless, Apple persists in its aggressive expansion. The rationale behind this is strategic rather than purely financial.
Key drivers behind Apple’s India shift:
- Geopolitical risks arising from U.S.–China tensions.
- Uncertainties regarding tariffs and export controls.
- Concentration risks in the supply chain.
- Long-term policy stability in India.
Reports suggest that Apple aims to manufacture the majority of iPhones sold in the U.S. in India by the close of 2026. This is a monumental shift, considering Apple sells over 60 million iPhones annually in the U.S., with nearly 80% still produced in China today.
India’s Share of Global iPhone Production Is Rising Fast
Industry projections indicate:
- ~25% of global iPhone production by 2025.
- 26–30% by 2027.
Should these targets be met, India will emerge as Apple’s second-largest manufacturing base, rapidly approaching China’s scale in a manner unprecedented in Apple’s history.
This growth bolsters India’s standing in:
- Advanced electronics manufacturing
- Precision assembly
- Export-driven industrial policy
- High-value global supply chains
PLI Scheme: Policy as a Growth Multiplier
The success of Apple’s iPhone exports underscores the efficacy of India’s smartphone PLI scheme, which incentivizes:
- Incremental production
- Export achievements
- Scalability and efficiency
Unlike previous industrial policies, the PLI connects incentives with global competitiveness rather than protectionist tendencies. Apple’s export-led approach aligns seamlessly with this operational framework.
What This Means Going Forward
Apple’s $50 billion export milestone is not an endpoint but a clear indicator.
For Apple:
- India transforms into a strategic manufacturing buffer.
- U.S. supply chains gain enhanced resilience.
- Long-term costs are exchanged for stability.
For India:
- Electronics exports ascend the value chain.
- Component ecosystems expand significantly.
- Global manufacturing credibility is reinforced.
Our Take
In a span of merely four years, India has transitioned from assembling entry-level iPhones to exporting substantial volumes of high-end devices and components. This acceleration is exceptional in global manufacturing, elucidating why Apple is prepared to bear elevated costs to institutionalize this shift.
If prevailing trends persist, India is poised not to serve solely as Apple’s “China alternative.”
Rather, it will evolve into Apple’s second fundamental manufacturing pillar—by design, rather than chance.
The remarkable $50 billion iPhone export milestone unequivocally demonstrates that India is no longer merely an assembly point—it is actively shaping Apple’s global supply chain through the PLI initiative.
In a short span, the nation has escalated into premium, export-oriented manufacturing at scale. Should current momentum prevail, India may not usurp China overnight, but will stand alongside it as Apple’s second manufacturing pillar far more swiftly than anticipated.
Source link: Techovedas.com.
