In its 2026–27 budget, India’s finance minister announced a five-year tax exemption on capital goods supplied by foreign firms to contract manufacturers in designated customs-bonded areas. Effective through the 2030–31 tax year, the relief removes import and ownership taxes on machinery, tooling and equipment that foreign lead firms—such as Apple—provide to partners like Foxconn and Tata. By easing the upfront capital burden, the measure is expected to accelerate expansion of iPhone assembly lines and ancillary component production, supporting Apple’s recent double-digit revenue growth in India and reinforcing the company’s strategy to diversify manufacturing outside China.

Apple reported first-quarter revenue of $143.76 billion, surpassing consensus by over $5 billion, driven by robust sales across iPhone, Mac and Services. This marked a 15.7% year-over-year increase and pushed the active installed base past 2.5 billion devices. Services revenue also reached a new quarterly high, accounting for more than 20% of total sales, as growth in App Store subscriptions, Apple Music and cloud offerings continued to outpace hardware. CEO Tim Cook highlighted that a significant portion of current customers were first-time buyers of iPhones, iPads and Watches, pointing to sustained market penetration opportunities.

Recent departures of at least four senior AI researchers—three to Meta and one to Google’s DeepMind—are fueling investor concern over Apple’s ability to compete in artificial intelligence. Bloomberg sources say that some employees are frustrated by Apple’s cautious approach and its reliance on external partnerships for AI capabilities. While Apple Intelligence remains a key strategic priority, these high-profile exits underscore the challenge of retaining world-class AI talent amid aggressive hiring by competitors and may pressure the company’s roadmap for integrating AI-driven features across its product ecosystem.