New Delhi: Apple’s iPhone has become India’s most valuable export item, with approximately $23 billion worth of devices shipped from domestic factories in 2025. The majority of these exports were sent to the United States, according to industry data.

This remarkable surge in iPhone exports was driven by production incentives, including the Production-Linked Incentive (PLI) scheme, and a shift away from reliance on Chinese suppliers, industry experts said.

For the first time, smartphones became India’s top export category, surpassing automotive diesel fuel, with total smartphone exports reaching $30.13 billion in 2025. Apple accounted for a significant 76% of this total. The company’s five-year PLI scheme is set to end in March 2026.

Apple’s manufacturing presence in India now includes five iPhone assembly plants – three operated by Tata Group entities and two by Foxconn. This is supported by a vast supply chain of around 45 companies, including numerous MSMEs supplying components for both domestic and international operations.

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India has now become the world’s second-largest mobile phone producer, with more than 99% of smartphones sold domestically now being made in India, marking a significant shift up the manufacturing value chain.

In addition to the export surge, Indian consumer preferences also showed a clear shift, with Apple’s iPhone 16 base variant becoming the top-selling smartphone model in 2025, replacing the traditional budget segment dominance, according to a report by Counterpoint Research.

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In its latest earnings report, Apple revealed record revenue figures in the Americas, Europe, Japan, and the Asia-Pacific region for the December quarter. Apple CEO Tim Cook noted, “We continued to gain momentum in emerging markets, which includes India, where we saw strong double-digit revenue growth.”

Apple’s expansion in India also continues, with the company set to open a new store in Mumbai on February 26. Cook highlighted that India is now the second-largest smartphone market globally and the fourth-largest PC market, adding that Apple had set quarterly revenue records for the iPhone, Mac, iPad, and services.

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“I am pleased with the momentum we’re seeing in India,” Cook concluded, as the company continues to expand its footprint in the region.

— IANS