Apple harvests record iPhone output from its India orchard
iPhone production surged 53% on-year during the January to June period, reaching 23.9 million units, according to market researcher Canalys. Volumes peaked in March when the company rushed to export the majority of India-made units to the US to avoid paying potential higher tariffs from April.
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The Donald Trump administration later declared a 90-day pause on imposing reciprocal tariffs for most of its trading partners till July 9, which has since been extended to August 1. For India, the US has proposed a 26% tariff. Both countries are currently in talks to finalise a trade deal.
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Another research firm Cybermedia Research (CMR) said iPhone export volumes touched 22.88 million units in H1 2025, from 15.05 million a year earlier, a 52% increase.
In value terms, Apple exported $22.56 billion worth of iPhones from India in H1 2025, compared to $14.71 billion a year earlier, CMR said.
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As per Canalys, iPhone production in the first half of this calendar year crossed 30 million units including exports and for the Indian market. Production is expected to cross 42 million units achieved in 2024 by this year-end, it said.
PhillipCapital said iPhone overall production crossed '94,643 crore in H1 2025, as compared to '57,328 crore in H1 2024, and '1,38,200 crore in 2024.
Production, after peaking in March ('19,630 crore), slowed to '11,267 crore, still higher than '9,808 crore achieved in June 2024.
Government officials said Apple's growth also underpins enhanced domestic value addition, ranging from 15-20% depending on the iPhone model.
"The sharp rise in iPhone exports in H1 2025 highlights India's rapid emergence as a leading global manufacturing and export hub for Apple. This double-digit growth in both volume and value is emblematic of the success of India's Production Linked Incentive (PLI) schemes and Apple's ongoing successful supply chain diversification," said Prabhu Ram, VP- Industry Research Group, CMR.
Foxconn (Hon Hai) and Tata Electronics are the leading manufacturers of iPhones in India, after Tata Electronics took over operations of Wistron and Pegatron plants in the country. In H1 2025, Foxconn led with over half the volume of iPhone exports, but Tata Electronics is fast catching up, contributing 4 out of every 10 iPhones exported from India, Canalys said.
"This shift reflects improving yield rates, line maturity, and Apple's growing confidence in India as a core manufacturing base," said Sanyam Chaurasia, analyst, Canalys.
Apple is now planning to undertake simultaneous day-one manufacturing of the upcoming iPhone 17 in China and India, which is due for launch in September. ET reported July 12 that components for the iPhone 17, albeit in small quantities, have started arriving at the Foxconn plant in Tamil Nadu, indicating the start of trial production of the upcoming iPhones.
"While not officially confirmed, the volume and type of these imports make it highly likely that trial production or early-stage assembly has commenced, months ahead of Apple's typical September launch window. This would mark a new benchmark with the earliest ever flagship ramp-up from India," Chaurasia said.
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