Apple plans to extend the production value of iPhones in India to $40 billion by the end of FY26. The proposed boost would help the brand fulfill 80% of its overall demand in the US and 100% of the growing domestic demand. The results of the 2025 Second Quarter call spawned such directives hosted by Chief Executive Officer Tim Cook. There he delineated that the majority of the iPhones sold in the Us starting from April-June would be from India. This has been due to the US administration of reciprocal tariffs allowing the import of fully manufactured products.
Following the targets, Apple producing Indian manufacturers Foxconn, and Tata Electronics, are ready to meet the new targets. The latest decision shifts Apple’s focus from China towards India, since China has been hit with severe tariff rates from America. While Apple has not been able to showcase a realistic value as of yet, the company estimates that the change would add about $900 million to its costs in Q3, much lower than initially anticipated.
Apples Issues With The Tariffs
Apple was caught in a critical predicament when the retaliatory tariff action by US president Donald Trump last month. The exemptions and concessions along the way helped the brand gain enough time to examine and analyze a way out of the situation. Since the shift of production location would benefit India, it is important to understand that this has been a result of India receiving relatively lower tariff rates and being in the list of countries that received concessions and paused retaliatory tariffs for 90 days.
India has always been profoundly enabling towards production; it was in the year 2020 that Apple doubled its production output from India after the government announced a Production Linked Incentive Scheme, Under the scheme government would subsidize manufacturers depending on the amount of their incremental sales. Apple initially started the production in India by only manufacturing older models; it now manufactures all models of its lineup here in India. The subsidy has profoundly aided Apple’s contact manufacturers Foxconn, Tata Electronics and Pegatron.
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