What fueled this leap? Experts point to the Production Linked Incentive (PLI) program and a deliberate shift from China-centric supply chains. Smartphones as a whole shattered records, exporting $30.13 billion from January to December, eclipsing diesel fuel and automobiles to become India’s premier export sector. Apple commanded a whopping 76% share of these smartphone exports.

The backbone of this success includes five dedicated iPhone plants: three under Tata Group’s umbrella and two operated by Foxconn, backed by 45 suppliers, many small-scale enterprises fueling parts for worldwide operations. India has vaulted to the second spot in global mobile manufacturing, with nearly all domestic sales featuring the ‘Made in India’ badge.

Market dynamics are evolving rapidly. Premium devices are stealing the show over budget options, per Counterpoint Research, with iPhone 16’s entry-level model topping 2025 sales. Apple’s December quarter shone brightly, posting all-time high revenues across key regions like the US, Europe, Japan, and Asia-Pacific.

In his earnings call, Tim Cook praised India’s role: ‘We’ve sustained double-digit growth in emerging markets like India.’ He noted record-breaking sales for iPhones, Macs, iPads, and services, positioning India as the world’s #2 smartphone hub and #4 PC market. Come February 26, a new Apple store opens in Mumbai, amplifying the company’s footprint.

With the PLI scheme winding down in March 2026, iPhone’s export supremacy signals India’s ascent as a tech manufacturing powerhouse, poised for even greater strides.

During the first quarter of fiscal year 2025, exports reached $3.2 billion, making this not only Apple’s best quarter to date but also India’s highest-ever quarter for smartphone exports.

In comparison, iPhone shipments from China plummeted by a massive 76 per cent to just 900,000 units. This marks the first time India has consistently outpaced China in supplying iPhones to the American market, according to a report by CNBC, citing the data.

“Apple has been preparing for this kind of trade disruption for years. The April spike likely reflects strategic stockpiling ahead of tariff hikes,” Le Xuan Chiew, research manager at Omdia, was quoted as saying in the report.

The demand in the US for iPhones is around 20 million per quarter at the moment. A ‘Made in US’ Apple iPhone can cost a whopping $3,500 (more than Rs 2,98,000) in absence of a fully-integrated supply chain in the country.

Dan Ives, global head of technology research at Wedbush Securities, told the CNN recently that the idea of fully domestic iPhone production is a “fictional tale.” Ives also warned that replicating Apple’s complex Asian supply chain in the US would result in massive cost increases.

Moreover, it would take Apple at least three years and a massive $30 billion just to shift 10 per cent of its supply chain to the US, according to market watchers. Apple CEO Tim Cook said during the company’s latest quarterly earnings call that “the majority” of iPhones shipped to the US for the June quarter will come from India.

US President Donald Trump has threatened a 50 per cent tax on all imports from the European Union as well a 25 per cent tariff on Apple products unless iPhones are made in the US.

However, according to informed sources, India’s competitive edge makes it a natural choice for tech giants like Apple, and the tech giant has assured the government of its commitment to manufacture its products and boost the ‘Make in India’ initiative. India has become a key hub for Apple’s global supply chain in recent years. Global tech giants such as Apple see a lot of economic sense in setting up manufacturing facilities in the country.

According to industry data, in the month of January, the iPhone exports reached around Rs 19,000 crore, an all-time high. The overall iPhone exports from the country grew more than 30 per cent in the 10 months this fiscal (April-January 2025) compared to the same period last fiscal (Rs 76,000 crore).

“Another record performance under PLI scheme. PLI propels iPhone exports past Rs 1 lakh crore in just 10 months of FY25,” Union Minister for Railways and Electronics and IT, Ashwini Vaishnaw, posted on X social media platform on Monday.

“Overall smartphones expected to cross Rs 2.25 lakh crore in FY25,” the union minister informed. More than 325 to 330 million mobile phones a year are being manufactured in India and on average there are about a billion mobile phones in use in India.

India is a huge market for Apple and “we have achieved a December quarter growth record where the iPhone was the top selling model in the country for the October-December period of 2024,” Apple CEO Tim Cook said last month.

He further stated that the iPhone was the top selling model in India for the December quarter. Notably, iPhones registered 7 per cent India smartphone market share in 2024, rising on robust local production and growing premiumisation trend in smaller cities.

On year-on-year basis, iPhones registered 23 per cent growth and iPads an impressive 44 per cent growth in the country, according to data shared by CyberMedia Research (CMR).

In the October-December quarter (Q4) of 2024, Apple, with its aspirational image and rising footprint, entered the top 5 smartphone players in India for the first time, garnering nearly 10 per cent market share by volume. Apple’s India shipments were set to cross 11 million marks in 2024.