Apple India Now Producing $22 Billion Worth of iPhones Amid Shift from China

Apple has significantly ramped up its iPhone production in India, assembling around $22 billion (roughly Rs. 1,89,412 crore) worth of devices in the 12 months ending March 2025. This marks nearly a 60 percent jump compared to the previous year and signals Apple’s growing reliance on India as a key hub in its global supply chain.

Expansion

According to sources familiar with the matter, Apple now produces around 20 percent of its global iPhone output in India — that’s one in every five iPhones. While the company hasn’t made any official comment, the growth reflects a strong shift away from its earlier manufacturing dependency on China.

This shift began gaining momentum during the COVID-19 pandemic when strict lockdowns disrupted production at Apple’s largest facility in China. The company and its partners have since been working to diversify their manufacturing footprint, and India has emerged as a prime destination.

Factories

Most of Apple’s iPhone production in India is handled by Foxconn, which operates a massive facility in southern India. Other major players include Tata Group’s electronics division, which took over operations from Wistron and now also manages Pegatron’s local production.

These local manufacturers have played a crucial role in helping Apple scale up its output in India, especially for its high-end models like the titanium Pro iPhones. The increased local production not only meets domestic demand but also feeds into Apple’s global supply — particularly exports to the US.

Exports

Apple exported iPhones worth Rs. 1.5 trillion ($17.4 billion) from India in the last fiscal year, according to India’s technology minister. This shows that a large share of India-made iPhones are now being shipped overseas, especially to the United States.

Exports have reportedly picked up after former US President Donald Trump reintroduced the idea of “reciprocal” tariffs. Fortunately for Apple and other tech firms, electronics like smartphones and computers have been excluded from these new duties — at least for now. That means Indian-assembled iPhones bound for the US market won’t attract additional import taxes.

Challenges

Despite the momentum, Apple still has a long road ahead. The company relies heavily on China, with nearly 200 suppliers operating there. Shifting even a portion of that supply chain to countries like India will take time.

In fact, according to Bloomberg Intelligence, it would take Apple about eight years to move just 10 percent of its manufacturing out of China. This is partly due to China’s advanced infrastructure, skilled labor, and long-standing relationships with component makers — all of which can’t be easily replicated elsewhere.

Tim Cook has openly acknowledged China’s unmatched expertise in device manufacturing, and it’s clear that while Apple is expanding in India, it’s not abandoning China completely any time soon.

Incentives

India’s growing importance in Apple’s ecosystem is also fueled by the Indian government’s manufacturing incentives. Prime Minister Narendra Modi has been pushing for India to become a global manufacturing hub, and Apple is benefiting from those policies.

The government recently announced $2.7 billion (roughly Rs. 23,246 crore) in new incentives to boost electronics production. The push also includes ambitions to grow India’s semiconductor industry — a key area if the country wants to climb higher up the electronics manufacturing ladder.

Market

While Apple’s share in India’s smartphone market is still relatively modest at around 8 percent, its revenue tells a different story. Apple’s sales in India hit almost $8 billion (roughly Rs. 68,877 crore) in fiscal 2024, most of which came from iPhones.

This shows that while Apple may not dominate in unit sales, it certainly leads in premium market share and revenue — an approach that’s proving to be successful in the Indian context.

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