Apple Inc. has significantly expanded its manufacturing operations in India, assembling iPhones worth $22 billion in the 12 months ending in March. This marks a 60 percent increase in production from the prior year, signaling a strong push to diversify away from China as a primary manufacturing base.
According to sources familiar with the matter, who spoke on condition of anonymity because the information is not public, Apple now manufactures about 20 percent—or one out of every five—of its globally popular iPhones in India. The $22 billion figure refers to the estimated factory gate value of these devices, not their retail price.
This increased output underscores Apple’s strategy to accelerate its shift to Indian production, a move that began gaining momentum when strict Covid-19 lockdowns disrupted operations at its largest manufacturing site in China. The majority of iPhones produced in India are assembled at Foxconn Technology Group’s facility in the southern part of the country. Additionally, Tata Group has become a critical player in this supply chain, with its electronics manufacturing unit acquiring Wistron Corp. and managing Pegatron Corp.’s operations in India.
Apple declined to comment when contacted outside its regular working hours.
India’s technology minister confirmed on April 8 that out of the total production value, Apple exported iPhones worth 1.5 trillion rupees, or approximately $17.4 billion, in the fiscal year ending March 2025.
People with knowledge of the matter noted that shipments of iPhones from India to the United States surged after President Donald Trump introduced the idea of “reciprocal” tariffs in February. These sources added that Apple saw a steady increase in both production and exports from its Indian operations throughout the fiscal year.
As previously reported by Bloomberg News, Apple is expected to increasingly rely on its India-based supply chain to fulfill iPhone demand in the U.S. market.
In a development late Friday, the Trump administration announced an exemption from the new reciprocal tariffs for electronics products, including smartphones and computers. This development benefits tech giants such as Apple and Nvidia Corp., although the exemption does not cover Trump’s separate 20 percent tariff on Chinese imports, which is part of an effort to push China to curb fentanyl exports.
As a result, iPhones manufactured in India will not currently be subjected to any of these reciprocal tariffs. However, except for the few categories exempted recently, Trump’s total tariff load on Chinese goods remains at 145 percent. This pressure is likely to further drive Apple and other companies to quicken the pace of their supply chain relocation efforts.
Nonetheless, Apple’s transition away from China is complicated by its extensive network of nearly 200 suppliers based in the country. This heavy dependency means a full-scale move to alternative locations could take several years. Despite Trump’s stated intention to see Apple manufacture iPhones in the United States, a shift to domestic production remains unlikely in the near future. Challenges such as insufficient facilities and a lack of skilled labor make large-scale U.S. production of iPhones unfeasible for now.
Apple CEO Tim Cook has consistently acknowledged China’s manufacturing expertise when it comes to producing the company’s premium devices. A 2022 analysis by Bloomberg Intelligence suggested that relocating just 10 percent of Apple’s manufacturing capacity from China would take approximately eight years.
Currently, Apple assembles the entire iPhone lineup in India, which includes its top-tier titanium Pro models. The company’s manufacturing efforts in India have received a major boost from government subsidies that are aligned with Prime Minister Narendra Modi’s broader goal of transforming the country into a global manufacturing center.
In line with these ambitions, Modi’s administration is also aiming to expand India’s electronics component manufacturing sector. To that end, the government has unveiled $2.7 billion in new financial incentives and is also advancing plans to strengthen the country’s semiconductor industry.
Apple, which currently holds close to an 8 percent share in India’s smartphone market, generated nearly $8 billion in sales in the country during the 2024 fiscal year. A significant portion of those revenues came from iPhone sales, highlighting India’s growing importance to the tech giant both as a manufacturing base and a consumer market.
Despite being a relatively small player compared to low-cost Android smartphone makers that dominate the Indian market, Apple has been steadily gaining ground. Its brand appeal, coupled with an expanding middle class, makes India a promising market for premium smartphone sales.
As Apple continues to navigate the geopolitical and logistical challenges of global manufacturing, its investments in India appear to be paying off. The blend of strong local partnerships, government incentives, and rising domestic demand has created a favorable environment for the company’s growth in the region.
India’s appeal as a manufacturing alternative has grown in recent years, particularly as multinationals look to mitigate risk by diversifying away from their overdependence on Chinese production. Apple’s recent scale-up in Indian manufacturing suggests that it is increasingly seeing the country not only as a backup option but as a central piece in its future strategy.
Even with the political uncertainties surrounding trade policy in the United States, Apple’s decision to deepen its roots in India reflects a long-term vision to build a more resilient and geographically diverse supply chain.
With a broader iPhone lineup now being assembled in India—including the high-end Pro variants—the country is playing a more crucial role in Apple’s global operations than ever before. As tensions with China persist and protectionist measures in the U.S. continue to evolve, Apple’s strategy to ramp up production in India could set the tone for other tech companies evaluating their own supply chain vulnerabilities.
While the transition is far from complete, Apple’s progress over the past year is a clear indication that India is no longer just an emerging market for sales, but also a vital hub for production. As one industry observer put it, “Apple’s India push is not just about saving costs. It’s about building resilience.”
That resilience will be tested in the years ahead, especially as the company faces a complex matrix of trade tariffs, manufacturing constraints, and the ever-changing global tech landscape. But for now, Apple appears to be on a solid path toward reducing its dependency on China while expanding its footprint in one of the world’s fastest-growing economies.