Apple Assembles $22 Billion Worth of iPhones in India, Accelerates Shift Away from China

MUMBAI — In a significant realignment of its global supply chain, Apple Inc. has assembled $22 billion worth of iPhones in India over the past 12 months, reflecting a nearly 60% year-on-year increase in local production. The move is part of the tech giant’s strategic pivot away from China as it seeks to de-risk operations and diversify manufacturing locations.

According to people familiar with the matter, the company now manufactures one in every five iPhones in India, amounting to 20% of global production. The estimate is based on factory-gate value, not retail price, and underscores India’s expanding role in Apple’s long-term supply chain strategy.

Export Surge and Strategic Realignment

Of the total production, Apple exported ₹1.5 trillion ($17.4 billion) worth of iPhones in the fiscal year ending March 2025, as confirmed by India’s technology minister earlier this month. The surge in exports came as Apple responded to looming tariff threats under U.S. President Donald Trump’s “reciprocal tariff” plan, announced in February.

Following the tariff announcement, shipments of India-made iPhones to the U.S. accelerated, with Apple reportedly prioritizing its Indian supply chain to serve American customers — a trend expected to continue in the months ahead.

While the Trump administration on Friday exempted smartphones and computers from these reciprocal tariffs, other penalties — including a 20% duty on Chinese imports tied to geopolitical and narcotics policy — remain intact. This ensures Apple’s India-based production remains strategically vital for avoiding cost inflation and maintaining uninterrupted supply.

India's Rise in the iPhone Ecosystem

The production shift is centered in southern India, primarily at factories run by Foxconn Technology Group, Apple’s largest assembly partner. Additional support comes from the Tata Group, which recently acquired Wistron’s operations and now controls Pegatron Corp.’s local facilities, cementing its role as a key Apple supplier.

Apple now produces its entire iPhone lineup in India, including the high-end titanium Pro models, signaling increased trust in the country’s manufacturing capabilities.

The growth is also driven by India’s Production-Linked Incentive (PLI) scheme, championed by Prime Minister Narendra Modi, which offers financial subsidies to firms expanding high-value electronics manufacturing. Modi’s administration has earmarked $2.7 billion in fresh incentives to bolster India’s semiconductor and component manufacturing ambitions, further strengthening the ecosystem.

“India is rapidly emerging as a global manufacturing hub,” said a senior executive at a major Apple supplier. “Apple’s expansion here is both strategic and inevitable.”

Challenges Remain Despite Momentum

Despite the progress, analysts warn that Apple’s supply chain remains deeply rooted in China, with more than 200 suppliers still concentrated there. Shifting large-scale production operations to other countries will be a multi-year undertaking, experts say.

In 2022, Bloomberg Intelligence estimated it would take up to eight years for Apple to shift just 10% of its total production out of China — a timeline that still holds true today, given the complexity of components, scale, and skilled labor requirements.

Apple CEO Tim Cook has previously lauded China’s manufacturing excellence and work ethic, indicating that while India’s role is growing, a complete exit from China is unlikely in the near term.

India: A Rising Market and Production Base

Apple’s presence in India is not limited to manufacturing. In 2024, the company’s revenue from the Indian market reached nearly $8 billion, with its market share nearing 8% in the smartphone segment — a remarkable achievement in a highly price-sensitive market dominated by Android devices.

With a population of over 1.4 billion and increasing digital adoption, India presents Apple with dual advantages: a growing consumer base and a reliable production hub.