India's mobile phone exports have reached a new high, with a significant contribution from Apple's iPhone exports. According to industry data, exports of mobile phones from India reached $6.5 billion in the April-July period of the fiscal year 2025 (FY25), marking a nearly 40% surge from the same period in the previous fiscal year (FY23). This growth has been led by iPhones, which surpassed $1 billion in exports in July alone, maintaining a similar month-on-month performance as seen in the first quarter of FY25.
The production-linked incentive (PLI) scheme has played a significant role in this surge. The scheme, introduced by the Indian government, aims to boost domestic manufacturing and exports, turning India into a global manufacturing hub for mobile phones. As a result, iPhone exports now constitute about 70% of the total mobile exports from the country.
Apple's performance during the April-July period has been marked by contrasting fortunes. However, experts believe that the company's long-term growth outlook remains positive. Apple is well-positioned to capitalize on India's growth trajectory in the coming years, with significant local manufacturing plans in place.
In the four-month period, online sales improved for iPhones, with the iPhone 15 remaining the top seller due to significant upgrades over previous generations. Apple's operations in the country reached $23.5 billion in value in the last fiscal year (FY24), with the Cupertino-based giant clocking nearly $8 billion in revenue in India in the last fiscal year.
Key Apple suppliers, including Foxconn, Pegatron, and Tata Electronics (formerly Wistron), have ramped up the assembly of iPhones as the country prepares to enter the crucial festive season. This move is expected to further boost iPhone exports from India.
Apple's decision to manufacture its high-end iPhone 16 Pro and Pro Max models in India for the first time is a significant development. This move is expected to reduce manufacturing costs by 10%, although it is uncertain whether this reduction will translate into lower prices for customers due to high component costs and local taxes.
The Indian government's efforts to boost the mobile phone industry have been successful, with a three-fold increase in domestic production and an almost 100-fold jump in exports of mobile phones over the last six years. The electronics sector has experienced rapid growth, reaching $155 billion in FY23. Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, driven primarily by mobile phones, which now constitute 43% of total electronics production.
India has significantly reduced its reliance on smartphone imports and is now manufacturing 99% of devices domestically, according to the government. This achievement is a testament to the success of the government's initiatives, such as the PLI scheme, which have encouraged domestic manufacturing and exports.
The decision to shift production from China to India is largely driven by geopolitical tensions between the US and China. As a result, Apple aims to increase its iPhone production in India from the current 10% to 25% by next year. For FY24, Apple reported around ₹68,000 crore in domestic sales, while the value of exported iPhones was ₹66,000 crore for FY23.
