Apple’s US shift brings $14-billion iPhone opportunity to Indian manufacturers in Q1

Apple’s iPhone production is expanding its base in India to meet soaring demand from the United States, as reported by Moneycontrol.

All that you should know about the iPhone shift

With the June quarter already on track to deliver iPhones worth $12–14 billion from India, the American tech giant is expected to source the majority of its US-bound iPhones from Indian factories. This is happening for the first time.

Production partners Foxconn and Tata Electronics can fulfil Apple’s supply requirements. As estimated by analysts, if current momentum continues, India could produce nearly $40 billion worth of iPhones by value in FY26, with 80% of that output intended for export to the US.

“Over 11 million iPhones were sold in the April–June quarter of 2024 with an average selling price (ASP) of $1,100, translating to $12.1 billion in value,” one analyst said. “This figure is expected to rise further given consistent demand.”

Also read: “When you're 20 and dreaming of starting a brand, you dream of an empire": Bewakoof CEO Prabhkiran Singh (startuppedia.in)

Reason for Apple's shift

According to industry officials, Apple has begun rerouting iPhones originally manufactured for the UK, Japan, and Europe to the US. This move is largely a response to increasing US tariffs on Chinese goods.

Also read: “In India, there’s reluctance to pay for app”: Duolingo CEO says less than 1% of a million users would pay (startuppedia.in)