Apple Assembles 22 Billion USD Worth of iPhones in India, Marking Major Shift from China

India Emerges as a Manufacturing Powerhouse for Apple

Apple has significantly expanded its manufacturing footprint in India, assembling iPhones worth $22 billion in the fiscal year ending March 2025. This represents a remarkable 60% increase over the previous year, with India now producing roughly one-fifth of the company’s total global iPhone output.

The bulk of this production has been carried out at high-capacity facilities operated by Apple’s key contract manufacturers, including Foxconn. Major Indian conglomerates have also stepped into the spotlight, with Tata Group now playing a pivotal role in managing iPhone production following its acquisition of certain operations previously run by Apple’s global suppliers.

Surge in Exports and Strategic Manufacturing Shifts

Apple has also ramped up its exports from India, with outbound shipments of iPhones estimated at $17.4 billion over the last fiscal year. This surge aligns with the company’s broader strategy to reduce overdependence on China amid ongoing geopolitical tensions and trade uncertainties.

One of the key drivers behind this shift is the impact of tariffs and trade policies. While electronics have largely been exempt from some of the most aggressive tariff implementations, Apple continues to seek more balanced and secure alternatives for long-term production, making India an increasingly attractive base.

Balancing Act: Reducing Reliance on China

Despite the significant expansion in India, Apple still remains heavily reliant on its existing manufacturing ecosystem in China, which includes nearly 200 suppliers. Industry experts suggest that transitioning even a modest portion of this capacity takes years, due to the sheer complexity of Apple’s global supply chain.

Bringing production to the United States has also proven challenging, largely due to constraints like limited skilled labor and inadequate manufacturing infrastructure at scale. As a result, India remains the most viable near-term alternative for substantial diversification.

India’s Growing Role in Apple’s Global Vision

India now produces every model in the iPhone lineup, including the high-end Pro and Pro Max versions. The country’s growing role is aligned with national ambitions to position itself as a global manufacturing hub. Supportive policies and financial incentives have helped fast-track Apple’s investment and confidence in the Indian market.

Looking forward, Apple aims to manufacture over 30% of its iPhones in India by FY2027. If global sales remain consistent, this could translate to more than $34 billion in production value within the country.

India’s rapid rise in Apple’s production strategy not only reflects a major shift in the global tech supply chain but also signals the country’s ascent as a key player in high-end electronics manufacturing.