Apple is expected to increase its iPhone production in India by about 40 billion (about Rs 3,36,000 crore) by the end of FY 26, as the tech veterans continue to move their global supply chain away from China amid growing geopolitical stress and trade charges.

According to industry estimates, this step will help Apple meet 80 percent of its iPhone demand in the US and fully fulfill India's growing domestic market. This development took place immediately after Apple CEO Tim Cook's statement during the company's Q2 2025 income call, where he revealed that most of the iPhone sold in the US in the current April-June quarter will be made in India.

“For June, we hope that India will be the original country of most iPhone sold in the US,” Cook said, citing the mutual charges levied by the US government, which are giving new looks to the production strategies. This change is a strategic reaction to tariffs that are connected to the original country of products.

While China will remain the original source of most Apple products sold outside the US, India and Vietnam are emerging as the major manufacturing centers. For example, Cook said that almost all the iPad, Mac, Apple Watch and AirPods sold in the US will now come from Vietnam.

Apple is estimated to have an impact of $ 900 million from the US tariff in the current quarter, although the exact long -term effects are uncertain. Cook said during the call, “We are not able to accurately estimate the impact of the tariff, as we are uncertain about potential future actions.”

This change also shows the increasing investment of Apple in India's electronics manufacturing sector, which has seen a significant bounce under the government's production-linked incentive (PLI) scheme. So far in FY25, smartphones have become India's top export category, the value of which has reached Rs 2 lakh crore.

Apple was the biggest contributor, about 70 percent of the iPhone in the total smartphone shipment from the country. In addition to expanding manufacturing, Apple plans to double its presence in India and plan to open more retail stores at the end of this year, which will already join two stores. The company recently set a quarterly sales record in the Indian market and reported strong pace in products and services.