Apple Inc. has significantly increased its iPhone production in India, assembling an estimated $22 billion worth of iPhones in the 12 months leading up to March, marking a nearly 60% growth compared to the previous year. This shift indicates Apple's ongoing strategy to diversify its manufacturing away from China. As of now, about 20% of Apple's iPhones—roughly one in five devices—are produced in India. This figure reflects the factory gate value of the devices rather than their retail price.
The ramp-up in production signifies that Apple and its suppliers are accelerating their pivot to India. This shift began when the strict Covid-19 lockdowns in China disrupted production at Apple’s largest manufacturing plant. A majority of the iPhones made in India are assembled at Foxconn Technology Group’s factory in southern India. Additionally, Tata Group’s electronics manufacturing division, which acquired Wistron Corp. and controls Pegatron Corp.'s operations, has become an important supplier.
In the fiscal year through March 2025, Apple exported iPhones worth 1.5 trillion rupees ($17.4 billion) from India, according to India's technology minister. Shipments of iPhones from India to the U.S. have accelerated, especially after the Trump administration announced its plans for "reciprocal" tariffs in February. Apple's production and exports from India surged consistently throughout the fiscal year, with a particular focus on supplying U.S. customers with iPhones made in India.
The recent decision by the Trump administration to exempt electronics, including smartphones and computers, from reciprocal tariffs is beneficial for companies like Apple and Nvidia. However, this exemption doesn’t apply to a separate 20% duty on Chinese goods, aimed at pressuring China to take action against fentanyl trafficking. As a result, iPhones produced in India will not face any duties for the time being, while Apple continues to shift its supply chain from China. Despite this, the significant reliance on Chinese suppliers means that this transition could take years to fully implement.
Apple's Chief Executive Officer, Tim Cook, has frequently praised the skills of Chinese manufacturers in producing its premium devices. According to a 2022 Bloomberg Intelligence report, it would take approximately eight years for Apple to move just 10% of its production capacity out of China. However, Apple has made significant progress in India, where it now assembles all of its iPhone models, including the premium titanium Pro models.
Apple’s manufacturing success in India has been supported by state incentives, driven by Prime Minister Narendra Modi’s push to turn the country into a major manufacturing hub. Modi’s government has also introduced $2.7 billion in new financial incentives aimed at boosting electronics component production and advancing India’s semiconductor industry.
In addition to manufacturing, Apple has a growing market presence in India. The company holds nearly 8% of the Indian smartphone market, with iPhone sales reaching nearly $8 billion in the fiscal year 2024.
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