India Set to Become Major iPhone Hub with 30 Million Units in 2025

India is steadily emerging as a key global manufacturing hub for Apple, with plans underway to produce up to 30 million iPhones in 2025. This marks a significant shift in Apple’s global strategy to reduce its reliance on China and diversify its production base. Reports indicate that Foxconn, one of Apple’s major suppliers, is planning to double its production in India this year, boosting India’s role in the company’s global supply chain.

Apple’s presence in India has grown considerably in recent years. From assembling phones through Wistron in 2017 to Foxconn’s large-scale operations, the tech giant has now partnered with 14 suppliers across the country. Many of these are based in Tamil Nadu, which has emerged as a key electronics manufacturing hub. Notably, Corning International, Apple’s US-based screen supplier, has begun building a new factory in Tamil Nadu in collaboration with Indian partner Optiemus Infracom.

Apple launched its first stores in India in 2023 and is now expanding with four more in major cities like Delhi, Mumbai, Pune, and Bengaluru. Although iPhones currently hold only about 25% of India’s smartphone market due to high prices, retailers are hopeful that increased local manufacturing will reduce costs and improve profit margins.

India’s appeal lies in a mix of competitive labor, tax cuts, and incentives from both central and state governments. States like Tamil Nadu and Karnataka are offering capital subsidies, electricity duty exemptions, and employment incentives to attract Apple’s suppliers. Pankaj Mohindroo, Chairman of ICEA, highlighted that India’s low corporate tax rates and abundant skilled workforce add to its attractiveness.

Analysts estimate that 15% of iPhones are currently made in India, and this number could rise to 25% by 2027. That would mean one in every four iPhones sold globally could be “Made in India.” Moreover, Apple’s shift is expected to create up to 600,000 new jobs in the country by the end of 2025.

However, experts caution that for India to truly rival China, it must invest in building a complete ecosystem of component manufacturers and skilled suppliers. Strengthening this foundation will be crucial for sustaining Apple’s long-term manufacturing plans in India.

Source: CNA