India Emerges as Key Hub as Apple Boosts iPhone Production to $22 Billion

Apple has significantly expanded its iPhone manufacturing in India, producing iPhones worth $22 billion in the 12 months ending March 2025. This marks a nearly 60% jump from the previous year and signals Apple’s growing shift away from China as it strengthens its presence in India.

Currently, about 20% — or one in every five iPhones — are being assembled in India, highlighting country’s rising role in Apple’s global supply chain. The production value mentioned refers to the factory-level price, not the final retail cost.

While majority of iPhones are being assembles at Foxconn’s facility in South India, Tata Group’e electronics unit has also become an important contributor after acquiring operations from Wistron and Pegatron.

Apple’s ramp-up in India began during the COVID-19 pandemic when lockdowns disrupted its Chinese supply chains. Since then, India has increasingly become central to Apple’s diversification strategy.

Of the total iPhones produced in India, around $17.4 billion worth were exported globally, especially to the United States. Reports suggest Apple will continue prioritizing Indian-made iPhones for the US market.

Recent trade policy changes in the US, including exemptions on smartphone tariffs, have further encouraged Apple’s India strategy. While broader tariffs on China remain high, Indian-made iPhones currently do not attract such duties, making India an even more attractive manufacturing destination.

Despite Apple’s reliance on around 200 suppliers based in China, the company is making steady progress in relocating part of its production. Moving a large portion of operations out of China will still take time due to the scale and complexity involved.

India’s appeal also stems from government support as financial incentives are being offered to boost electronics and semiconductor manufacturing, thus strengthening the larger vision to make India a global manufacturing hub.

Apple now assembles its full range of iPhones in India — including premium models like the titanium Pro versions. With sales in India nearing $8 billion and an 8% market share, Apple is expected to continue deepening its manufacturing footprint in the country.

Source: Moneycontrol