Apple Inc. has ramped up its production of iPhones in India, assembling devices worth $22 billion in the year ending March, marking a nearly 60% increase from the previous year. This increase highlights Apple’s ongoing strategy to diversify its manufacturing base away from China.
Currently, around 20% of Apple’s iPhones—approximately one in five—are produced in India, according to sources who requested anonymity as the information is confidential. This dollar figure reflects the estimated factory gate value of the devices, not their retail prices.
This surge in production indicates that Apple and its suppliers are accelerating their shift to India, a transition that began following severe Covid lockdowns that impacted output at Apple’s largest facility in China. Most iPhones made in India are assembled at a Foxconn Technology Group factory in southern India, with Tata Group’s electronics manufacturing division, which acquired Wistron Corp. and manages Pegatron Corp.’s operations, also playing a significant role.
Apple did not provide a comment when approached outside of business hours. According to India’s technology minister, Apple exported iPhones valued at 1.5 trillion rupees ($17.4 billion) from India in the fiscal year ending March 2025.
The increase in iPhone shipments from India to the US accelerated after former President Donald Trump announced reciprocal tariffs in February. Throughout the fiscal year, Apple’s production and exports from India steadily increased.
As reported by Bloomberg News, Apple plans to focus more on sourcing iPhones from its Indian supply chain for its US customers. Recently, the Trump administration exempted certain electronic goods, including smartphones and computers, from these reciprocal tariffs, providing a favorable situation for companies like Apple and Nvidia Corp. However, the exemption does not cover Trump’s separate 20% duty on Chinese goods, which aims to compel Beijing to take action against fentanyl production.
Consequently, iPhones manufactured in India currently do not incur any additional duties. Despite these exemptions, the overall tariffs on Chinese goods remain at 145%, likely prompting companies like Apple to further accelerate their supply chain transitions. Nonetheless, with nearly 200 suppliers and a heavy dependence on China, fully shifting production to other countries could take several years.
Apple’s CEO Tim Cook has frequently acknowledged the high skill levels in China for producing Apple’s flagship devices. In a 2022 estimate by Bloomberg Intelligence, it was suggested that it could take eight years to relocate just 10% of Apple’s production capacity out of China.
Importantly, Apple now assembles its full range of iPhones in India, including the premium titanium Pro models. This manufacturing achievement is supported by state subsidies linked to Prime Minister Narendra Modi’s goal of transforming India into a manufacturing hub. Modi is also expanding incentives for electronics component manufacturing, investing $2.7 billion, and focusing on advancing semiconductor production capabilities.
In India’s smartphone market, Apple holds nearly an 8% share, with sales—largely driven by iPhones—reaching nearly $8 billion in fiscal 2024.
