New Delhi: Apple is predicted to ramp up its iPhone manufacturing in India to just about $40 billion (about Rs 3,36,000 crore) by the top of FY26, because the tech big continues to shift its world provide chain away from China amid rising geopolitical tensions and commerce tariffs. 

In keeping with trade estimates, this transfer will allow Apple to satisfy 80 per cent of its iPhone demand within the US and cater totally to India’s rising home market. The event comes shut on the heels of Apple CEO Tim Cook dinner’s assertion throughout the firm’s Q2 2025 earnings name, the place he revealed that almost all of iPhones offered within the US within the present April-June quarter could be made in India.

“For June, we do anticipate the vast majority of iPhones offered within the US can have India as their nation of origin,” Cook dinner mentioned, citing reciprocal tariffs imposed by the US authorities which are reshaping manufacturing methods. This pivot is a strategic response to the tariffs which are tied to the nation of origin of merchandise.

Whereas China will proceed to be the origin for many Apple merchandise offered outdoors the US, India and Vietnam are rising as key manufacturing hubs. For example, nearly all iPads, Macs, Apple Watches, and AirPods offered within the US will now come from Vietnam, Cook dinner famous.

Apple anticipates a $900 million influence from US tariffs within the present quarter, although the precise long-term implications stay unsure. “We aren’t capable of exactly estimate the influence of tariffs, as we’re unsure of potential future actions,” Cook dinner added throughout the name.

This shift additionally displays Apple’s deepening funding in India’s electronics manufacturing sector, which has seen a exceptional growth below the federal government’s production-linked incentive (PLI) scheme. In FY25 thus far, smartphones turned India’s high export class, touching a document Rs 2 lakh crore in worth.

Apple was the most important contributor, with iPhones making up almost 70 per cent of the full smartphone shipments from the nation. Along with increasing manufacturing, Apple is doubling down on its presence in India with plans to open extra retail shops later this yr, including to the 2 already operational. The corporate just lately set a quarterly gross sales document within the Indian market and reported sturdy momentum throughout services and products.