Apple Targets Increased iPhone Production in India for US Market

Apple is making significant strides to shift its iPhone production from China to India, aiming to import the majority of iPhones sold in the U.S. from India by the end of next year. This strategic move is part of Apple’s broader effort to mitigate risks associated with tariffs and geopolitical tensions. The company plans to double its annual iPhone output in India to over 80 million units, reflecting a growing reliance on the South Asian nation as a manufacturing hub.

Doubling Production in India

Apple’s ambitious plan involves increasing its iPhone production in India from just over 40 million units in the fiscal year ending March 2025 to more than 80 million units annually. This shift comes as Apple sells more than 60 million iPhones each year in the U.S. The company’s representatives in India have not yet commented on these developments. Reports indicate that Apple aims to source all iPhones sold in the U.S. from India by the end of 2026. This move is part of a larger trend of companies reevaluating their supply chains in light of recent geopolitical challenges and trade tariffs.

Impact of Geopolitical Tensions

The decision to increase production in India is influenced by various factors, including the harsh COVID-19 lockdowns in China that disrupted production at Apple’s largest manufacturing plant. Additionally, tariffs imposed during the Trump administration have prompted Apple to accelerate its shift away from reliance on Chinese manufacturing. The company has already seen a significant increase in production in India, with a reported $22 billion worth of iPhones assembled in the country over the past year, marking a nearly 60 percent increase from the previous year.

Key Partnerships and Investments

The bulk of iPhones produced in India are assembled at Foxconn Technology Group’s factory in southern India. Additionally, Tata Group’s electronics manufacturing arm plays a crucial role in Apple’s supply chain, having acquired Wistron Corp.’s local business and managing Pegatron Corp.’s operations in the region. Both Foxconn and Tata are expanding their production capabilities in southern India, further solidifying the country’s position as a key player in Apple’s manufacturing strategy.

Export Growth and Tariff Exemptions

Apple’s production in India has also led to significant export growth, with the company exporting approximately 1.5 trillion rupees (around $17.5 billion) worth of iPhones from the region in the fiscal year ending March 2025. The acceleration of shipments to the U.S. followed the announcement of reciprocal tariffs by the Trump administration. While recent exemptions for electronics goods, including smartphones, have provided some relief, the overall tariff landscape remains complex, particularly with ongoing duties on Chinese imports. Apple’s successful manufacturing efforts in India are bolstered by state subsidies aimed at transforming the country into a global manufacturing hub, aligning with Prime Minister Narendra Modi’s vision for economic growth.

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