Apple Powers Record-Breaking Smartphone Exports from India Amid Tariff Uncertainty
iPhone shipments soar 63% as India hits $10B in smartphone exports despite looming US trade decisions
India’s Smartphone Export Boom
India’s smartphone exports have reached a new high, crossing $10 billion in the first four months of FY26 (April–July), a 52% increase from the same period last year. This remarkable growth comes despite rising concerns over potential US tariff hikes on tech products.
- In FY25’s April–July period, exports stood at $6.4 billion.
- FY26’s surge highlights India’s growing role in global tech supply chains.
- Smartphone shipments alone now contribute over 60% of India’s electronics exports.
Apple Leads the Export Surge
At the forefront of this rise is Apple Inc, which has significantly expanded its export footprint from India.
- iPhone exports surged 63% year-on-year, rising from $4.6 billion to $7.5 billion.
- Apple now contributes 75% of total smartphone exports from India.
- Key manufacturing partners — Foxconn, Pegatron, and Tata Electronics — are driving this momentum, all supported under the government’s Production-Linked Incentive (PLI) scheme.
The Role of PLI and Vendor Contributions
India’s PLI scheme, aimed at boosting domestic manufacturing, is playing a pivotal role in shaping the export landscape.
- The scheme, now in its final year (ending March 2026), incentivizes production through subsidies.
- Apple’s contract manufacturers have capitalized on this, aligning production for global supply chains.
- Together, these vendors account for $7.5 billion of the total $10 billion exports.
Samsung Faces Setback as Incentives End
While Apple’s exports have skyrocketed, Samsung has seen a decline.
- Samsung’s exports fell from $1.54 billion to $1.24 billion, following the conclusion of its PLI scheme in March 2025.
- Analysts attribute this dip to India’s cost disadvantages compared with manufacturing hubs like China and Vietnam.
Tariff Threats from the US: A Cloud on the Horizon
India’s current edge — zero-duty access to the US — may soon change due to an ongoing Section 232 investigation by the US Department of Commerce.
- The investigation, launched on April 16, 2025, covers semiconductors, smartphones, and PCs.
- While smartphones are temporarily exempt from tariffs as of April 11, 2025, future policy changes could impose duties up to 50%.
- China currently faces a 20% duty, while India enjoys preferential treatment — a key factor in current export success.
Electronics Exports Surge Alongside Smartphones
Smartphones are not just driving phone-specific exports — they’re lifting the entire electronics sector.
- Electronics exports grew 43.7% in April–July FY26, reaching $16.16 billion.
- Smartphones now account for 61.8% of electronics exports, up from 41% a year ago — a near 50% increase in their share.
India’s smartphone manufacturing and export industry, led by Apple’s aggressive expansion, is witnessing unprecedented growth. However, the sustainability of this boom hinges on both the continuation of government incentives and the outcome of US trade policy decisions. As the Section 232 verdict nears, manufacturers and policymakers alike will be watching closely.
