Apple is projected to increase its iPhone manufacturing in India to approximately $40 billion (around Rs 3,36,000 crore) by the conclusion of FY26, as the technology leader continues to relocate its global supply chain from China in response to escalating geopolitical tensions and trade tariffs. Industry forecasts suggest that this strategy will allow Apple to fulfill 80 percent of its iPhone demand in the United States while fully addressing the expanding domestic market in India. This development follows Apple CEO Tim Cook’s remarks during the company’s Q2 2025 earnings call, where he indicated that the majority of iPhones sold in the US during the current April-June quarter would be produced in India. Cook stated, ‘For June, we do expect the majority of iPhones sold in the US will have India as their country of origin,’ referencing the reciprocal tariffs imposed by the US government that are influencing production strategies.
This shift is a calculated response to tariffs associated with the products’ country of origin. While China will remain the primary source for most Apple products sold outside the US, India and Vietnam are emerging as significant manufacturing centers. For example, Cook mentioned that nearly all iPads, Macs, Apple Watches, and AirPods sold in the US will now be sourced from Vietnam. Apple anticipates a $900 million impact from US tariffs in the current quarter, although the precise long-term effects remain unclear. ‘We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions,’ Cook added during the call. This transition also signifies Apple’s increasing investment in India’s electronics manufacturing sector, which has experienced substantial growth under the government’s production-linked incentive (PLI) scheme.
