By iPhone Production in India Sees $22 Billion Surge in FY2025
In a strategic pivot to diversify its manufacturing operations, Apple has significantly ramped up iPhone production in India, reaching a massive $22 billion for the fiscal year ending March 2025. This marks a staggering 60% year-over-year increase, according to a Bloomberg report, and signals Apple’s growing reliance on India amid rising geopolitical tensions and production disruptions in China.
The tech giant now assembles one in every five iPhones in India, underscoring a transformative shift in its global supply chain away from China, traditionally its dominant manufacturing hub.
iPhone Production in India Supports Massive Export Growth
Of the total production volume, approximately $17.4 billion worth of iPhones were exported globally, as confirmed by India’s Union Minister for Electronics and Technology on April 8. This surge in exports not only strengthens India’s standing as a global electronics exporter but also aligns with Prime Minister Narendra Modi’s ambitious “Make in India” initiative.
Why iPhone Manufacturing is Shifting to India
Apple’s decision to ramp up production in India follows prolonged disruptions at its Chinese factories—particularly those caused by strict COVID-19 lockdowns. These interruptions significantly impacted assembly timelines at Apple’s largest plant in Zhengzhou, operated by Foxconn.
As a response, Foxconn Technology Group expanded operations at its facility in southern India, which now handles the majority of iPhone assembly in the country. Additionally, Tata Group has emerged as a vital player by acquiring Wistron Corp. and managing Pegatron’s operations in India. These partnerships are pivotal to Apple’s aggressive expansion plans in the region.
US Tariff Threats Accelerate iPhone Shipments from India
The increase in iPhone production in India was further influenced by trade policy shifts in the United States. After President Donald Trump announced reciprocal tariffs in early 2025, Apple accelerated shipments of Indian-assembled iPhones to avoid potential cost hikes.
Though smartphones and consumer electronics received a temporary exemption from these tariffs, a 20% duty on Chinese goods remains active, further incentivizing Apple to diversify its manufacturing footprint. This is a significant development as India-made iPhones now reach U.S. shores faster and at more competitive prices than Chinese counterparts.
India Now Produces the Full iPhone Lineup, Including Pro Models
India is no longer just assembling budget iPhone models. As of FY2025, the country is producing Apple’s entire range of iPhones, including the premium titanium-structured Pro models. This is a testament to India’s growing technical expertise and supply chain reliability.
Bloomberg notes that this shift was bolstered by Indian government subsidies designed to attract foreign manufacturing giants. Under the Production-Linked Incentive (PLI) scheme, Apple benefits from performance-based financial incentives, making large-scale local production financially attractive.
Apple’s Market Share in India Hits 8% as Local Production Increases
With the company now manufacturing at scale within India, Apple’s sales in the Indian market reached $8 billion in fiscal 2024, boosting its local smartphone market share to nearly 8%. While still dominated by Android players, Apple’s strong showing in premium segments demonstrates its rising brand value among Indian consumers.
Looking ahead, India’s importance in Apple’s global roadmap is set to increase. The government has introduced a $2.7 billion initiative to further stimulate electronics component manufacturing, which could attract even more of Apple’s suppliers and ecosystem partners to the country.
Conclusion: India Is Central to Apple’s Global Manufacturing Strategy
Apple’s $22 billion investment in iPhone production in India reflects a broader shift in the global electronics landscape. Rising tariffs, supply chain disruptions, and geopolitical uncertainties have compelled Apple to rethink its manufacturing strategies—and India has emerged as a reliable alternative.
With strong government support, increasing technical capabilities, and a favorable export climate, India is poised to play a central role in Apple’s future.
