India is emerging as a major manufacturing hub in Apple’s global supply chain. The country has significantly expanded its role in iPhone production as the company accelerates its strategy to diversify manufacturing beyond China.
Apple assembled about 55 million iPhones in India in 2025, marking a 53% increase from 36 million units in 2024, according to a report by a financial news service. The surge means India now produces around 25% of Apple’s global iPhone output, which is estimated at 220–230 million units annually.
A key milestone in this shift is that Apple is now assembling the entire iPhone 17 lineup in India, including the premium Pro and Pro Max models. Earlier, India-based production was mostly limited to older or mid-range models, while high-end devices were manufactured primarily in China.
The change reflects Apple’s broader supply chain diversification strategy amid ongoing US tariff pressures on Chinese goods and rising geopolitical tensions. Government incentives under the manufacturing push led by Narendra Modi have also supported the rapid growth of smartphone production in the country.
Apple’s key manufacturing partners in India include Foxconn, Tata Electronics, and Pegatron. These companies also continue to produce earlier models such as the iPhone 15 and iPhone 16 for both domestic markets and exports.
The Tata Group is expected to play an even larger role in the coming years. Its facilities could account for up to 50% of India’s iPhone production within the next 2 years, according to earlier reports.
The rise in manufacturing has also reshaped global trade patterns. In the April–June 2025 quarter, India overtook China to become the largest source of smartphones shipped to the US, capturing 44% of the market, based on data from Canalys. China’s share fell from over 60% a year earlier to 25%.
Shipments from Foxconn’s India operations alone reached $4.4 billion in iPhones to the US in the first 5 months of 2025, exceeding the $3.7 billion shipped during all of 2024. Apple also reportedly chartered cargo flights in March 2025 to transport around $2 billion worth of iPhones from Chennai before tariff deadlines.
India’s role is expanding beyond assembly. In the 2026–27 Union Budget, the government introduced a 5-year income tax exemption allowing foreign companies to provide manufacturing equipment to Indian contract manufacturers without triggering tax liabilities. Apple is also reportedly in early talks with CG Semi, owned by the Murugappa Group, to assemble and package display chips at a facility in Gujarat.
Despite the rapid growth, India still faces cost challenges compared to China and Vietnam. Apple and its partners are now discussing a new round of incentives with the government, as existing production subsidies are set to expire on March 31, 2026.
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