As Apple prepares to source the majority of its iPhones for the US market from Indian manufacturing in the June quarter, experts say Foxconn and Tata Electronics plants in India are well-equipped to meet demand worth $12 to $14 billion.
They also estimate that if this pace continues beyond the June quarter, iPhone manufacturing in India will be worth around $40 billion in FY26, with roughly 80% of that volume going to the US market.
"Over 11 million iPhones were sold in the April-June quarter of 2024 at an average selling price (ASP) of $1,100, totaling $12.1 billion. While this is typically Apple's weakest quarter, demand in terms of value will exceed $12 billion," according to an analyst who spoke on the condition of anonymity.
With $40 billion in manufacturing, Apple would be able to meet 80% of its US demand and 100% of its domestic demand, which is increasing quarterly.
"The April-June quarter is also on track to be a bumper quarter for Apple in India," stated an analyst.
According to Apple CEO Tim Cook, nearly all iPads, MacBooks, Apple Watches, and AirPods sold in the US during the June quarter will be made in Vietnam, while the majority of iPhones sold in the US will be imported from India.
Apple intends to move a sizable percentage of iPhones manufactured in India from Europe, the UK, Turkey, and Japan to the US in the June quarter. According to industry sources and analysts, Apple is increasing domestic manufacturing to offset the impact of rising US tariffs.
In order to meet its targets, analysts and industry experts estimate that Apple will need to boost the overall value of iPhone manufacturing in India from $22 billion. With the local market expected to contribute $5–8 billion, this means raising exports by roughly $17.5 billion to $32-35 billion.
About 40–45 million iPhones, or 18–20% of Apple's total production worldwide, were made in India in 2024. About 12 million were sold only in India, 13 million were shipped to other foreign markets, and 14–15 million were shipped to the United States.
According to industry experts, Apple has begun shipping India-made iPhones to countries including the Netherlands, Italy, the Czech Republic, Japan, Turkey, the United Kingdom, and the United Arab Emirates.
"Apple will most likely reroute India-made iPhones intended for these markets to the US for the June quarter by tweaking the models," a source said.
Apple's partners have already expanded the capacity of existing Indian plants and established new facilities.
Tata Electronics' new iPhone plant in Hosur has begun manufacturing older-generation iPhones. Foxconn's new Bengaluru plant, the second-largest outside China, is being built with a $2.8 billion investment and will soon begin producing iPhones. It will significantly affect India's export growth.
According to ICEA statistics, iPhones worth Rs 48,000 crore ($480 million) were exported in the March quarter, up from Rs 28,500 crore ($285 million) in the same period the previous year.
In general, the FOB price is the cost of producing and transporting the iPhone until it is ready for export, whereas the final retail price, which can be much higher, is the cost to the end user.
The FOB price of an iPhone (including assembly and components) can range from $300 to $500, depending on the model and location. However, the final retail price might range from $700-1,500, depending on the model and market, representing a markup of 2-3times the FOB price.
According to S&P Global Market Intelligence, 98% of Apple's iPhone exports from India in March went to the United States, totaling approximately 3.1 million handsets, a significant increase from 84% in February. Foxconn handled the vast majority of March's production.
