Apple has significantly increased its iPhone manufacturing in India. In the year ending March 2025, the company assembled iPhones worth around $22 billion. This marks a 60% rise compared to the previous year. The move reflects Apple’s ongoing strategy to reduce its reliance on China for production.
According to Bloomberg, which cited people with knowledge of the matter, India now produces one out of every five iPhones globally. The $22 billion estimate reflects the factory gate value, not the retail price.
Foxconn and Tata lead India production
Foxconn’s large facility in southern India plays a key role in this growth. Tata Group, which now operates the former Wistron and Pegatron plants, has also become a major part of Apple’s supply chain in the country.
Exports increase after Trump’s tariffs
India’s IT Minister recently said Apple exported iPhones worth ₹1.5 trillion (about $17.4 billion) in the last fiscal year. Insiders noted a rise in shipments to the U.S. after former President Donald Trump imposed “reciprocal” tariffs in February. Apple reportedly responded by speeding up exports from India.
Although smartphones were later excluded from the new tariffs, many other Chinese imports still face duties as high as 145%. Trump’s separate 20% tariff on Chinese goods, introduced to pressure Beijing on fentanyl, also remains in place.
India’s iPhone exports are not subject to U.S. tariffs. Analysts believe Apple will increasingly depend on India to supply the American market.
China still critical to Apple’s supply chain
Despite India’s growing role, Apple’s ties to China remain strong. The company still relies on about 200 Chinese suppliers and a deeply integrated ecosystem. Apple CEO Tim Cook has also acknowledged China’s strength in manufacturing.
Even though Trump has urged Apple to move production to the U.S., experts say this is unlikely to happen soon. The U.S. lacks the infrastructure and skilled labor needed for large-scale iPhone assembly.
A 2022 report from Bloomberg Intelligence said it would take eight years for Apple to shift just 10% of its production out of China. This shows how deeply embedded Apple remains in the Chinese supply chain.
India’s manufacturing success grows
Still, Apple has made major progress in India. It now assembles its full iPhone range there, including high-end titanium Pro models. Prime Minister Narendra Modi’s Production-Linked Incentive (PLI) scheme has supported this shift. A new $2.7 billion subsidy package for electronics and semiconductor manufacturing has also helped.
Apple earned nearly $8 billion from India sales in the last fiscal year, mostly through iPhones. Though its market share in India stands at only 8%, Apple appears committed to growing its presence. The company sees India not just as a sales market, but as a key part of its global manufacturing network.
