Indian iPhone Factories to Supply Bulk of US Market in June Quarter
Apple’s strategic realignment of its supply chain is unlocking a massive opportunity for Indian manufacturers, with analysts estimating that iPhone exports from India to the US could be worth $12–14 billion in the April–June 2025 quarter alone. As Apple pivots away from China amid tariff pressures, Indian facilities operated by Foxconn and Tata Electronics are emerging as the backbone of the company’s US-bound iPhone supply for the quarter. The move is part of a broader plan to meet the majority of US iPhone demand directly from India, replacing supply routes that previously served Europe, the UK, Turkey, and Japan.
Highlights:
India to supply $12–14 billion worth of iPhones to the US in Q1 FY26.
Foxconn and Tata Electronics leading the US-bound production.
Apple rerouting exports previously meant for European and Asian markets.
FY26 iPhone Output in India Seen at $40 Billion, With 80% Destined for US
If current production momentum continues beyond the June quarter, Apple’s total iPhone production in India could approach $40 billion by value in FY26, according to analysts tracking the sector. Notably, 80% of this production is expected to be exported to the US, significantly reducing Apple’s exposure to Chinese supply chains. Analysts calculate that meeting such demand would require India to double current iPhone export values, scaling from $17.5 billion to at least $32–35 billion, while the domestic market is projected to contribute $5–8 billion in annual sales.
Highlights:
FY26 iPhone output in India projected at $40 billion.
80% of production to be US-bound, rest for Indian market.
Export values need to double to $32–35 billion to meet targets.
iPhone Sales Trends: ASPs, Demand Metrics, and Strategic Shifts
In the April–June 2024 quarter, Apple sold more than 11 million iPhones in the US with an average selling price (ASP) of $1,100, amounting to $12.1 billion in revenue. Analysts expect this number to rise in the current quarter, despite it traditionally being Apple’s weakest quarter in terms of volume. Apple CEO Tim Cook confirmed that the company expects most iPhones sold in the US this quarter to be manufactured in India, while Vietnam will handle almost all US-bound iPads, MacBooks, Apple Watches, and AirPods.
Highlights:
Over 11 million iPhones sold in Q1 2024 with $1,100 ASP = $12.1 billion.
Apple anticipates even higher value in Q1 FY26.
India set to be main iPhone source for US; Vietnam to handle other Apple devices.
Realignment of Export Routes to Prioritize US Deliveries
Apple plans to reroute shipments of iPhones previously meant for countries like the Netherlands, Italy, the UK, Turkey, Japan, and the UAE to the US for the June quarter. This model reallocation strategy, according to industry insiders, is aimed at maximizing export value to the US and navigating around expected tariff escalations. Sources indicate Apple is making minor tweaks to models to comply with US retail standards while preserving production efficiencies in Indian plants.
Highlights:
iPhones originally intended for Europe, Asia now redirected to US.
Model configurations being adjusted for US compliance.
Strategy aims to buffer tariff impacts and maximize profitability.
Foxconn and Tata Electronics Ramp Up Capacity to Meet Surge in Demand
To support this manufacturing scale-up, Tata Electronics has commenced operations at its new Hosur plant, assembling older-generation iPhones, while Foxconn is close to launching production at its $2.8 billion Bengaluru facility, which will be the second-largest iPhone plant outside China. Both firms are aggressively expanding capacity and workforce, signaling their long-term commitment to Apple’s global supply chain realignment and India’s growing role in electronics manufacturing.
Highlights:
Tata Electronics’ Hosur plant begins iPhone assembly.
Foxconn’s $2.8 billion Bengaluru factory nearing launch.
India emerging as Apple’s critical export hub.
Q1 Export Volumes Surge: 98% of iPhones Shipped to US in March
Data from S&P Global Market Intelligence and the India Cellular and Electronics Association (ICEA) shows that 98% of iPhones exported from India in March 2025 were shipped to the US, totaling 3.1 million units, a significant jump from February’s 84% share. iPhones with a freight-on-board (FOB) value of ₹48,000 crore ($480 million) were exported in Q1, marking a sharp increase from ₹28,500 crore ($285 million) in the same period the previous year. The FOB price of $300–$500 per unit underscores the significant markup to retail levels, which typically range from $700 to $1,500, depending on the model and region.
Highlights:
3.1 million iPhones shipped to US from India in March alone.
Q1 iPhone exports grew to ₹48,000 crore ($480 million).
FOB prices 2–3 times lower than final US retail prices.
