US tech giant Apple has ramped up its iPhone production in India by approximately 53% in 2025, manufacturing around 55 million units compared to 36 million the previous year. A Bloomberg report revealed that Apple now produces a quarter of its flagship products in India to avoid tariffs on Chinese imports. The company globally manufactures about 220–230 million iPhones annually, with India’s share increasing significantly, largely due to government-backed production-linked incentives.
Apple has managed to mitigate cost disadvantages like weaker supply chains and logistical hurdles compared to China through these subsidies. In India, Apple now assembles all versions of the iPhone 17 lineup, including the Pro and Pro Max models, through suppliers like Foxconn Technology Group, Tata Electronics, and Pegatron Corp. Older models such as the iPhone 15 and 16 are also locally produced for both domestic sales and exports.
The tech giant is also expanding its retail presence in India, with six stores currently operational, and is gearing up to introduce Apple Pay in the country later this year. Apple’s sales in India have surpassed $9 billion, prompting the company to explore new avenues for growth. As Apple’s five-year production-linked incentive (PLI) window is set to conclude in March 2026, discussions are underway with the Indian government for a fresh round of incentives to sustain export growth.
Industry analysts point out that despite India narrowing the cost gap with countries like China and Vietnam, electronics assembly remains relatively costly. Therefore, continued government support is deemed crucial to maintain competitiveness in this sector. In 2025, Apple’s iPhones emerged as India’s most valuable export item, with approximately $23 billion worth of devices shipped primarily to the United States from Indian factories. Smartphones, for the first time, became India’s top export category, with total exports valued at $30.13 billion in the January-December period, where Apple accounted for 76% of the total smartphone exports.
