Apple to dial up India output to $28 billion as exports rise sharply

Apple eyes $28 billion iPhone production in India for FY26, driven by a surge in exports expected to touch $22 billion - marking a 28% jump in its final PLI scheme year

Buoyed up by strong growth in exports during the first half (H1) of this financial year, Apple Inc, based on discussions with the government, is aiming for a production free-on-board value of $28 billion in India — including both exports and domestic sales — for 2025–26 (FY26).

 

This figure represents a 21.7 per cent increase in overall production value in what will be the final year of the production-linked incentive scheme for mobile phones, compared with $23 billion in the previous year.

 

However, most of this increase will come from exports, which are expected to reach $22 billion, up 27.7 per cent from $18 billion last year. Apple is expected to capitalise on its peak export season — the October–December quarter — when shipments from India usually peak.

 

Industry experts say these estimates are conservative. Apple has already recorded exports of $10 billion in H1FY26 — a sharp 75 per cent rise from $5.7 billion a year earlier. To meet its $22 billion export target for FY26, the company will need to ship roughly the same value of iPhones over the next six months.

 

Domestic production has also performed well, supported by strong sales of the iPhone 17 series, which are expected to grow 25 per cent year-on-year.

 

Exports will continue to dominate Apple’s India production, accounting for 78 per cent of total output value in FY26 — roughly the same share as last year.

 

An Apple spokesperson did not respond to queries regarding its production value projections.

 

According to estimates from the Ministry of Electronics and Information Technology (MeitY), overall smartphone exports from India are expected to reach $30–35 billion, with the bulk coming from iPhones. In H1 of calendar year 2026, total smartphone exports have already touched $13.4 billion, of which 75 per cent came from Apple.

 

In the domestic market, the total production value of smartphones is projected to rise to $40 billion in FY26, up from $38 billion in 2024–25.

 

The spike in iPhone exports is largely driven by growing shipments to the US market. In September alone, total smartphone exports to the US — dominated by Apple — rose threefold, accounting for 52.3 per cent of India’s total smartphone exports. Apart from Apple, other major exporters to the US include Lenovo and Samsung.

 

Bigger India bite

 

·         Apple projects iPhone production value in India to reach $28 bn in FY26

 

·         Exports expected to rise to $22 bn in FY26, from $18 bn last year

 

·         Domestic iPhone production value to increase to $6 bn in FY26 — a 25% rise

 

·         Meity estimates total Indian smartphone exports at $30–35 bn

 

·         Overall domestic smartphone production value to edge up to $40 bn (₹3.6 trn)