Securing India’s Apple pie

With Trump warming up to China, a shadow has appeared on India’s dazzling iPhone export story. Can the govt ensure the Apple cart isn’t upset?

- SURAJEET DAS GUPTA

Apple Inc’s calculated gamble to strengthen iPhone production in India, with a substantial share being shipped to the United States, despite tariff uncertainties, has so far paid off.

In the first half of 2025-26 (FY26), the Cupertino-headquartered company exported $10 billion worth of iPhones from India — growing by a staggering 75 percent over last year, and hitting a new milestone in exports.

Apple Inc vendors say if the momentum continues, then by the end of FY26, India could easily account for one-fourth of the world’s iPhone production by value. Exports could hit over $22 billion, and another $6 billion could come from domestic sales.

The heady growth of the first six months, they say, is because Apple Inc Chief Executive Officer Tim Cook carefully negotiated the tariff turmoil and made peace with US President Donald Trump, who had initially asked him to manufacture the phones in the US and not in India. Trump had even threatened to impose 100 per cent duty on the chips and semiconductors imported to make the phones.

Cook reacted quickly. Apple increased its earlier commitment to invest in the US by another $100 billion — notching it up to $600 billion — in various areas, including manufacturing servers. Trump then hinted that companies like Apple Inc would not face this punitive measure, and imports from India would continue at zero duty.

This is good news, considering that the US has imposed a 50 per cent duty on a range of commodities it imports from India as punishment for buying Russian oil.

All is not hunky-dory, though. A new challenge has emerged, one that could jeopardise India’s dream run of smartphone exports. It will test the Apple-India partnership — which has become a shining example of a manufacturing collaboration between the government and a global giant.