Introduction
Apple Inc. is rapidly shifting gears in its global manufacturing strategy. The tech giant has injected a $14 billion boost into its India operations, signaling a decisive move to reduce reliance on China and deepen its manufacturing roots in South Asia.
This bold expansion reflects Apple’s long-term vision to diversify its supply chain and tap into India’s growing potential as a global electronics hub.
According to a recent Bloomberg report, Apple manufactured iPhones worth $22 billion in India in FY2025, up nearly 60% year-over-year, the highest ever for the country.
India now accounts for nearly 20% of all iPhones assembled globally, a significant leap in just a few years.
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5 Key Takeaways
iPhone production in India surged 60% year-over-year in FY2025.
India now accounts for nearly 20% of all iPhones made worldwide.
Apple exported iPhones worth ₹1.5 trillion (~$17.4 billion) from India this past fiscal year.
Three major iPhone plants operate in India—two in Tamil Nadu and one in Karnataka.
Component suppliers like Foxlink, Sunwoda, and Aequs now produce iPhone parts locally.
Why Apple Is Shifting iPhone Production to India
Apple has relied on China for iPhone production for more than a decade. But times have changed.
Rising labor costs, trade tensions, and pandemic-related lockdowns in China disrupted Apple’s operations. These factors pushed Apple to explore alternatives.
India became the clear choice. It offers lower costs, political stability, and a massive pool of skilled labor. Government support also plays a key role.
India’s Production-Linked Incentive (PLI) scheme offers financial benefits to companies that manufacture in the country.
Apple began assembling iPhones in India back in 2017. At first, the focus was on low-cost models. But now, Apple is manufacturing even the latest iPhone models—like the iPhone 15 series—right in India.
Apple iPhone Production in India Hits $22 Billion
Apple’s production value in India has skyrocketed. In the last fiscal year (April 2024–March 2025), Apple assembled iPhones worth $22 billion in India. This marks a sharp 60% increase over the previous year.
India now makes 1 in every 5 iPhones sold globally. That’s up from less than 5% just a couple of years ago. The country has quickly become Apple’s second-largest iPhone production base after China.
This production includes models for both local and global markets. Apple is not just assembling for India—it is using India as a major export hub.
Apple’s iPhone Exports from India Cross $17 Billion
India’s Electronics and IT Minister Ashwini Vaishnaw confirmed the export figures. Apple exported ₹1.5 trillion ($17.4 billion) worth of iPhones from India in FY2025.
These iPhones were shipped to Europe, the Middle East, Asia, and now even the U.S. Export volumes have more than doubled in two years. It’s a major win for both Apple and India.
India has improved ports, customs, and logistics. Faster clearances and lower tariffs help Apple ship iPhones globally. This makes Indian-made iPhones more competitive in global markets.
Key Players Behind iPhone Assembly in India
Apple doesn’t assemble iPhones directly. Instead, it relies on contract manufacturers and suppliers. In India, three plants currently produce iPhones.
- Foxconn, Apple’s top assembly partner, runs one of the main plants in Tamil Nadu.
- Tata Group, India’s largest industrial group, now operates the other two plants—one also in Tamil Nadu and another in Karnataka.
- These plants assemble a mix of iPhone models, including the iPhone 14 and iPhone 15.
Apple is also pushing its supply chain partners to expand into India. Sunwoda, a battery manufacturer from China, now produces iPhone batteries in India. Foxlink, which makes cables, has set up production in Andhra Pradesh. Aequs, an Indian company, is making iPhone enclosures.
By building this local ecosystem, Apple is cutting down on import costs. It also reduces delays and boosts Apple’s ability to scale up quickly in India.
India’s PLI Scheme Boosts Apple’s Manufacturing Plans
The Indian government’s Production-Linked Incentive (PLI) scheme has been a game-changer. It rewards electronics makers for hitting production targets. The more a company produces, the more it earns in incentives.
Apple’s contract manufacturers in India qualify for these benefits. This has significantly lowered Apple’s overall production costs in India. It also encouraged Apple’s global suppliers to set up shop locally.
PLI has made India one of the most attractive destinations for electronics manufacturing. It supports job creation, tech upskilling, and domestic investment. Apple is one of the largest beneficiaries of this program.
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Job Creation and Economic Impact in India
Apple’s growing presence in India is creating tens of thousands of jobs. Foxconn and Tata have hired thousands of factory workers. Many are women, especially in Tamil Nadu, where female employment is a key policy goal.
Apple’s suppliers are also hiring engineers, managers, and logistics staff. Local training programs are helping Indian workers develop new skills. This is boosting India’s manufacturing capabilities and raising wages in the sector.
India’s government hopes Apple’s success will attract more global companies. Other tech giants, including Samsung and Google, are already expanding production in India.
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India as Apple’s Long-Term Strategic Base
Apple’s expansion in India is not just about short-term gains. It’s a long-term bet on a rising economy. India is now Apple’s fifth-largest market, and it’s growing fast.
Apple opened its first retail stores in Mumbai and Delhi in 2023. These stores are part of a larger plan to grow Apple’s market share in India. Local production also helps Apple avoid heavy import taxes. That means iPhones could become more affordable in India.
Analysts expect Apple to shift 25–30% of its global iPhone production to India by 2026. This would make India Apple’s second-largest production center, second only to China.
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Conclusion: A Win-Win for Apple and India
Apple’s $22 billion iPhone production milestone marks a turning point. The company is clearly making India a core part of its global manufacturing network. This move helps Apple reduce risk, lower costs, and build a more resilient supply chain.
At the same time, India is benefiting from jobs, exports, and global credibility. Apple’s shift shows that India is ready to lead in high-end electronics manufacturing.
For Apple, this is more than just a strategy shift. It’s a long-term investment in a growing market. For India, it’s a chance to become a top player in the global tech economy.
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