Apple-led boom lifts smartphone exports to record $13.4 billion in H1 FY26

By: Team India Tracker

Smartphone exports hit a record $1.7 billion in September, nearly double last year’s $923 million, driven by a threefold surge in US shipments, which made up 52% of the total

The smartphone exports soared to $13.4 billion in the first half (April–September) of FY26, a 59 per cent jump from $8.5 billion a year earlier, according to industry estimates. The surge highlights how the government’s Production-Linked Incentive (PLI) scheme continues to reshape the electronics landscape, helping the country emerge as a global manufacturing hub despite intensifying trade tensions.

In September alone, smartphone exports touched $1.7 billion, nearly doubling from $923 million in the same month last year—the highest monthly tally yet. The sharp rise was largely driven by a threefold jump in shipments to the US, which accounted for 52.3 per cent of total exports during the month.

Exports to the US surged from $258 million in September 2024 to a record $900 million last month, buoyed by Apple’s aggressive scale-up of iPhone production and logistics in India.

Apple dominates export growth

Apple remains the dominant growth engine behind the smartphone export story. The company’s shipments reached $10 billion in the first six months of FY26, representing over 75 per cent of total smartphone exports. The Cupertino-based giant’s contract manufacturers—Foxconn, Pegatron, and Tata Electronics—have ramped up local output, aligning with Apple’s broader strategy to diversify production beyond China.

Two new iPhone assembly plants became operational in recent months, further boosting exports and supporting strong domestic demand for the new iPhone 17.

The scale and pace of Apple’s production shift have redefined India’s position in the global electronics supply chain. For the first time, the country is exporting high-value premium devices at scale, not just assembling mid-range handsets, say analysts.

PLI scheme fuels momentum

The PLI scheme, launched in 2020 to offset India’s cost disadvantages and incentivise local manufacturing, remains the primary catalyst behind the export boom. For Apple’s vendors, the incentive window closes in March 2026, while Samsung’s benefits ended in FY25—a factor reflected in Samsung’s decline in exports during the first half of FY26.

According to the India Cellular and Electronics Association (ICEA), August and September typically see slower export activity due to global model refresh cycles and machinery upgrades. However, this year’s spike defied that pattern, signalling structural momentum rather than a one-off surge. Exports are expected to accelerate again by mid-October, coinciding with the global rollout of new iPhone models and festive season demand.

Tariff headwinds, trade uncertainty

The export boom comes despite 50 per cent tariffs imposed by the Trump administration on a wide range of Indian goods. Electronics—particularly smartphones—have so far been excluded from these duties, pending a Section 232 investigation by the US Department of Commerce.

Meanwhile, Chinese smartphone exports to the US face a 20 per cent “fentanyl duty,” imposed as part of Washington’s broader trade crackdown. This has prompted Apple to ramp up shipments from India to the US, taking advantage of duty-free access.

However, analysts warn that if the US eases tariffs on Chinese goods as part of a trade compromise with Beijing, Apple may recalibrate its export mix between India and China.

“The tariff advantage has given India a temporary edge, but the long-term competitiveness will depend on logistics efficiency, supply chain depth, and policy stability,” said an analyst at Counterpoint Research.

Electronics exports rare bright spot

Even as India’s overall merchandise exports face headwinds, electronics—led by smartphones—have emerged as a rare bright spot. The sector’s rapid expansion highlights how manufacturing incentives, rising global diversification from China, and deepening integration with global supply chains are reshaping India’s export profile.

If current momentum holds, smartphone exports could cross $25 billion in FY26—a milestone that would cement India’s position as one of the world’s top smartphone manufacturing and export bases.