Apple Inc. Set to Produce $70 Billion Worth of iPhones in India by FY26

Key Highlights:

• Apple Inc. is expected to produce iPhones worth approximately $70 billion in India between FY22 and FY26.
• The production-linked incentive (PLI) scheme, set to conclude at the end of March, is likely to see its strongest year in FY26, with $25 billion in output valued.

Production Growth:

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• Apple's manufacturing partners, Foxconn and Tata Electronics, have driven the expansion in local production capacity.
• Exports have been the primary engine of growth, with 70% of the cumulative output value, approximately $50 billion, coming from overseas shipments of India-made iPhones.
• Production momentum has accelerated sharply in the final year of the scheme, with output valued at $25 billion in FY26, a record annual figure and 20% higher than FY25.

Cost Advantage:

• India's duty-free access to the U.S. market created a cost advantage, encouraging Apple to shift some export-oriented production away from China.
• The U.S. introduced a 20% fentanyl-linked tariff on imports from several countries, including China, last April, which narrowed the cost disadvantage from India's estimated 10-14%.

Government Data:

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• India's smartphone exports to the U.S., dominated by iPhones, jumped 182% between April and December FY26, rising from $5.04 billion to $14.1 billion.
• The government's decision on whether to extend the PLI scheme could be critical in sustaining export momentum.