India dials up record smartphone exports; shipments touch $13.4 bn in H1

Shipments touch $13.4 bn in H1FY26, powered by iPhone; September exports to US treble

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Smartphone exports for the first six months (April to September) of 2025–26 (FY26) surged to $13.4 billion, based on industry estimates. Driven by the production-linked incentive (PLI) scheme, this marks a 59 per cent jump over the $8.5 billion exported during the same period of the previous financial year (2024–25/FY25).

 

In September alone, a threefold increase in smartphone exports to the US pushed total exports to $1.7 billion — the highest monthly growth recorded so far compared to FY25. Exports last month were 87 per cent higher than the $923 million exported in September 2024.

 

Smartphone exports to the US rose from $258 million in September last year to a record $900 million last month. The US accounted for 52.3 per cent of total smartphone exports in September.

 

Apple has been the key growth engine, with iPhone exports touching $10 billion, accounting for more than 75 per cent of India’s total smartphone exports in the first half (H1) of FY26.

 

According to a recent statement by the India Cellular and Electronics Association, August and September are typically among the lowest export months due to upcoming product launches and scheduled machine retrofits. Consumers worldwide also hold back purchases during this period, waiting for new models and subsequent discounts on older versions. Exports usually pick up again by mid-October.

 

The PLI scheme — designed to offset India’s cost disadva­ntages — has been the primary driver of smartphone exports. The scheme ends for Apple in March 2026 and has already ended for Samsung in FY25. Samsung’s smartphone exports fell in H1FY26 compared to the same period last year.

 

Electronics, particularly smartphones, have been a rare bright spot for Indian exports this year, despite headwinds from the 50 per cent tariffs imposed by the Trump administration. So far, select electronic products, including mobile devices, have been excluded from these tariffs pending a Section 232 investigation by the US Department of Commerce.

 

Apple’s vendors continue to expand their production footprint in India, with two new iPhone assembly plants recently becoming operational. This has coincided with strong domestic sales of the new iPhone 17.

 

However, much will depend on the outcome of US–China trade negotiations. Exports of smartphones from China to the US currently face a 20 per cent “fentanyl duty”, while Indian exports enter duty-free. If Washington removes this punitive duty — which has prompted Apple to ramp up shipments from India to the US — the company may reconsider its export strategy between the two countries.