India has become Apple's main export hub to the US, which consumes over $40 billion worth of iPhones annually.
Apple Inc is going all out to ramp up production in India ahead of the peak sales season (September-December), both for exports and domestic demand, as it prepares to launch the iPhone 17 in the first week of September worldwide, including in India.
To meet the expected demand, the company has expanded iPhone capacity in the country.
Foxconn's new plant in Devanahalli near Bengaluru has begun assembling the iPhone 17, while another facility in Hosur, Tamil Nadu, is also readying production.
For the first time, all iPhone 17 models, including premium variants like the Pro Max, are rolling out simultaneously.
Apple CEO Tim Cook is cautiously encouraged by signals from Washington.
The US has extended its zero-duty exemption on imported mobile phones, even as it imposed a punitive 50 per cent tariff on India for buying Russian oil.
Another signal came when US President Donald Trump, during a recent event with Cook (where he announced an additional $100 billion investment on top of the earlier $500 billion commitment in the US), said that while a 100 per cent tariff on semiconductors is being considered, companies like Apple that assemble their products overseas will continue to enjoy duty-free access for phones.
This statement comes even as the US department of commerce report under Section 232 of the Trade Expansion Act -- investigating national security implications of semiconductors and embedded products such as phones and laptops -- was expected by mid-August but has reportedly been deferred by a few months.
Trump's assurance is crucial, as many feared the report might impose differential tariffs on semiconductors used in iPhones assembled in India versus China, potentially eroding India's zero-duty advantage (China pays 20 per cent due to fentanyl violations).
From Cupertino's moves, it is clear Apple is pushing ahead with expanding iPhone exports, at least for this year.
Exports of iPhones from India, especially to the US, have surged.
Between April and July -- a traditionally lean sales period -- exports hit a record $7.5 billion, up 63 per cent from a year earlier.
If the pace continues, industry experts say shipments could easily cross $24 billion to $25 billion this year.
However, Apple's original plan of meeting all US demand from India (requiring $40 billion worth of shipments) by FY26, while also meeting domestic demand, now looks more difficult.
For now, India has become Apple's main export hub to the US, which consumes over $40 billion worth of iPhones annually.
According to Canalys, 78 per cent of iPhones shipped from India in the first half of calendar year 2025 went to the US, compared to 53 per cent in the same period last year.
The shift is stark: In the second quarter of CY 2025, India's share of global iPhone shipments rose to 44 per cent from 13 per cent a year ago, while China's fell to 21 per cent from 61 per cent.
A bigger bite for Apple: India goes from pit stop to powerhouse
Apple expands iPhone capacity in India with new Foxconn and Tata Electronics plants assembling the iPhone 17
Exports from India jumped 63% in April-July 2025 (a non-peak season), hitting $7.5 billion
78% of iPhones assembled in India were shipped to the US in H1 CY 2025
Apple expects zero-duty access for iPhones into the US to continue
Feature Presentation: Ashish Narsale/Rediff
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