Startup Originals Team
Apple has hit a new milestone in India, the company exported $10 billion worth of iPhones in the first half of FY26, reflecting a sharp 75% year-on-year increase. This dramatic rise underlines India’s growing importance as a major hub in Apple’s global manufacturing and export strategy.
Export Numbers & Growth Rate:
- In H1 FY26, Apple’s outbound shipments of iPhones from India reached $10 billion, up from $5.71 billion during the same period last year.
- In September alone, exports soared, touching $1.25 billion, which represents a 155% YoY jump for that month.
- Much of Apple’s India production continues to be export-oriented: last fiscal year, nearly 80% of India’s iPhone output was shipped overseas.
What’s Driving the Surge?
Expansion in Manufacturing Capacity:
- Apple’s manufacturing footprint in India has been scaling up. In April 2025, Tata Electronics’ Hosur plant and a new Foxconn unit in Bengaluru started production, bringing the number of iPhone factories in India to five.
- These additions are critical in supporting higher volumes, especially exports.
Strategic Export Focus:
- Apple is increasingly shifting its global supply chain to de-risk reliance on China, particularly amid tariff pressures and geopolitical headwinds.
- For example, a Reuters report revealed that between March and May 2025, 97% of iPhones exported by Foxconn from India went to the United States.
Government Incentives & Policy Support:
- India’s Production-Linked Incentive (PLI) scheme for mobile manufacturing continues to incentivize large assembly and export volumes in the country.
- The strategic push by Apple and its contract manufacturers aligns with national goals to strengthen electronics manufacturing and exports.
Challenges & Observations:
- Despite exponential growth, Apple must manage supply chain constraints, component sourcing, and maintain quality control at scale.
- Export demand is sensitive to global economic cycles and trade policies; any adverse changes (e.g. tariffs, regulatory shifts) could impact the momentum.
- The focus on exports also underscores the need to balance domestic market penetration with global shipment goals.
