Apple Inc. has made significant advancements in its manufacturing operations in India, resulting in a remarkable surge in iPhone exports. Under the production-linked incentive (PLI) scheme, the company has surpassed $50 billion in shipments, achieving this milestone by December 2025. This comes just four years after Apple joined the PLI program in FY22, with projections suggesting that exports could increase further as the scheme continues. In the first nine months of FY26 alone, Apple exported nearly $16 billion, underlining its dominance in the Indian smartphone market.
Apple’s Export Surge
Apple’s performance in India has been impressive, especially when compared to its nearest rival, Samsung. While Samsung exported approximately $17 billion worth of devices during its five-year PLI period from FY21 to FY25, Apple has already surpassed this total in a shorter period. The rapid increase in iPhone exports has positioned smartphones as a vital component of India’s overall mobile exports, which account for around 75% of the total. This surge signifies a major transformation for India, elevating smartphones to the top export category in FY25, a remarkable increase from its previous position of 167th in 2015.
Manufacturing Infrastructure and Support
Apple’s achievements in India are backed by a robust manufacturing infrastructure, which includes five iPhone production units—three operated by the Tata Group and two by Foxconn. These facilities are supported by a network of nearly 45 component suppliers, including many micro, small, and medium enterprises. This ecosystem not only serves domestic demand but also plays a crucial role in global exports. While the smartphone PLI scheme is set to conclude in March 2026, government officials have indicated that support for the sector will continue. A new incentive framework is expected to be developed alongside industry stakeholders to ensure sustained growth in manufacturing.
Challenges and Future Prospects
Despite impressive growth, challenges persist for Indian manufacturers when compared to their counterparts in China and Vietnam. Officials have acknowledged these gaps and are dedicated to providing ongoing support to the industry. While some mobile phone exports occurred prior to the PLI scheme’s launch, significant momentum was observed post-rollout, especially after Apple decided to build its supplier ecosystem in India. Currently, India is the only country outside China where iPhones are manufactured at scale.
Samsung, the sole participant among the ten PLI beneficiaries to complete its participation in FY25, achieved its production targets early due to its established manufacturing base. In contrast, Apple encountered challenges in setting up new facilities, leading the government to extend the PLI scheme by one year. Under revised terms, companies can claim incentives for any five consecutive years within the six-year scheme period, allowing Apple to choose FY22 to FY26 for its participation.
Expansion of the Electronics Ecosystem
Looking ahead, both Apple and Samsung are broadening their operations beyond smartphones. Apple’s vendors have been incorporated into the electronics component manufacturing scheme, with plans for substantial investments and job creation. Major suppliers such as Motherson, Tata Electronics, and Foxconn are set to manufacture iPhone enclosures, while Amperex Technology Limited will produce lithium-ion cells. Additionally, Hindalco will manage aluminum extrusion for components.
India is also starting to export electronic components to countries like China and Vietnam for the production of various Apple products, including MacBooks, AirPods, and Apple Watches. This shift marks a significant change in global electronics supply chains, further solidifying India’s role in Apple’s manufacturing strategy and the broader electronics market.
Digihunt is not a financial advisor and this is not investment advice.