Record iPhone Exports from India: $22B Made, $17.5B Shipped—What Changes Now?
India didn’t just assemble more iPhones this year—it shipped them out in record numbers. Official data cited by multiple publications says Apple and its vendors produced roughly US$22 billion worth of iPhones in FY25, of which about 80%—around US$17.5 billion—left India’s shores. That’s not a rounding-error jump; it’s a supply-chain statement.
The quick context
For years, India was a massive smartphone market but a modest exporter. Two things changed the trajectory: New factories from global contract manufacturers, and the Production-Linked Incentive (PLI) scheme that rewards incremental output at scale. Put together, India’s iPhone line has gone from pilot to production engine—fast.
What the numbers say
Reports referencing official data peg FY25 iPhone output at ~US$22 billion, with ~US$17.5 billion exported—both measured at FOB (factory gate) value, not retail pricing. In parallel, India’s overall smartphone exports in April–September FY26 hit ~US$13.5 billion, up ~60% YoY, with iPhones doing the heavy lifting. Several datapoints this year underline momentum: record monthly export spikes, airlifts to meet US demand, and a growing share of US iPhone supply coming from India. (The Times of India)
Why this happened
· Scale & reliability: New capacity from Foxconn (Bengaluru) and Tata, among others, has unlocked higher volumes and tighter quality control. (Business Standard)
· PLI economics: The scheme pays incentives on incremental sales (FOB value), helping offset the initial cost curve of large-scale manufacturing.
· Demand pull from the US: In several months, an outsize share of India-made iPhones went straight to the US, with emergency airlifts during tariff scares.
So what for India
This isn’t just bragging rights. A sticky export base can mean:
· More jobs & deeper supply chains: High-volume assembly attracts component ecosystems—mechanicals, PCBs, connectors, batteries—creating tier-2/3 supplier jobs.
· Capex & know-how: Each new line bakes in process engineering, yield improvement, and precision tooling expertise.
· Policy validation: Rising exports at FOB value suggest PLI is catalysing scale, not just import substitution.
What it could unlock next
If the export engine keeps humming through FY26, expect:
· Bigger vendor footprint: Additional lines from existing partners and possibly new EMS players.
· Wider product mix: Beyond phones to wearables or IT hardware as India nudges those categories with policy carrots.
· Services spillover: Logistics, testing, repair and refurb hubs anchored around manufacturing clusters.
The fine print (and the risks)
· Tax and legal friction: Apple is lobbying for clarity on how India treats Apple-owned equipment in vendor plants. If left unresolved, it could add tax exposure and slow scale-up.
· Tariff geopolitics: Export spikes have traced directly to tariff timelines in key markets. Policy whiplash abroad can distort planning at home.
· Component dependence: Local value-addition still trails assembly capacity. Moving from SKD/CKD to deeper localization is the real margin unlock—harder, slower, but essential. (Industry commentary and PLI design indicate this goal, but exact FY25 localization share isn’t officially broken out.) )
· FOB vs retail optics: The headline export dollars are FOB; retail values are typically 50–60% higher, so comparisons need apples-to-apples accounting.
India-specific lens: availability, prices, and consumer impact
For Indian buyers, the export surge won’t immediately crash iPhone prices—those track global positioning and channel strategy. But the upside shows up in:
· Faster availability: New models arriving quicker due to local lines and better logistics.
· Stable supply during festivals: With India as a production node, festive season stockouts can ease.
· Jobs & ecosystem: From line operators and quality engineers to logistics and component suppliers, multiplier effects accrue domestically—even if the devices ship out.
A balanced read
The FY25 step-up is real, but sustaining it means converting assembly wins into component ecosystems: camera modules, displays, and advanced packaging. That’s where policy tweaks (customs regimes, testing norms, R&D incentives) and legal clarity (on equipment ownership and tax treatment) matter most. If those pieces align, India’s iPhone story can graduate from “record exports” to “sticky platform.”
Where the data comes from (IST-stamped)
· Record iPhone exports and FY25 $22B/80% figures cited by mainstream outlets referencing official data; reports dated Oct 8–15, 2025 (IST).
· H1 FY26 smartphone export surge (~$13.5B, +60% YoY) from ICEA-cited coverage (Oct 2025).
· Reuters reporting through Apr–Jul 2025 on US-bound shipments, airlifts, and the growing US share of India-made iPhones.
We’ll update this piece if the government or Apple publishes granular plant-wise output or confirmed localization percentages.