Apple’s iPhone Production in India Surges 60%
Apple has significantly ramped up its iPhone production in India, assembling devices worth $22 billion (approximately ₹1.89 lakh crore) in the fiscal year ending March. This marks a nearly 60% increase from the previous year, reflecting the company’s ongoing strategy to diversify its manufacturing away from China. Currently, one in five iPhones is produced in India, highlighting the country’s growing importance in Apple’s supply chain.
Shift in Manufacturing Strategy
Apple’s decision to increase production in India is part of a broader strategy to reduce its reliance on China. The shift gained momentum after the COVID-19 pandemic disrupted operations at Apple’s largest manufacturing facility. The majority of iPhones made in India are assembled at Foxconn Technology Group’s factory in the southern region, with Tata Group’s electronics manufacturing division playing a crucial role as a supplier. This transition underscores Apple’s commitment to diversifying its manufacturing footprint in response to geopolitical and operational challenges.
According to sources familiar with the matter, Apple exported approximately ₹1.5 trillion ($17.4 billion) worth of iPhones from India in the fiscal year ending March 2025. The increase in shipments to the U.S. was notably influenced by the announcement of reciprocal tariffs by former President Donald Trump, which prompted Apple to expedite its production and export strategies. Reports indicate that Apple plans to prioritize iPhones produced in India for its U.S. customers, further solidifying the country’s role in its supply chain.
Impact of Tariffs and Trade Policies
The recent exemption of electronics, including smartphones, from Trump’s reciprocal tariffs has provided a boost for companies like Apple. This exemption means that iPhones manufactured in India will not incur additional duties, making them more competitive in the U.S. market. However, the overall tariff landscape remains complex, with Trump’s cumulative levies on Chinese goods still in effect, potentially complicating Apple’s supply chain strategy.
Despite the favorable conditions for Indian-made iPhones, Apple faces challenges in completely shifting its production away from China. The company relies on nearly 200 suppliers in China, and experts estimate that it could take years to transition a significant portion of its manufacturing capacity to other countries. Apple’s CEO, Tim Cook, has acknowledged the high level of skill present in Chinese manufacturing, indicating that a complete shift to India or other locations may not happen swiftly.
India’s Growing Role in Apple’s Supply Chain
Apple’s manufacturing success in India is bolstered by government initiatives aimed at transforming the country into a global manufacturing hub. Prime Minister Narendra Modi’s administration is offering substantial financial incentives, including $2.7 billion (approximately ₹23,246 crore), to enhance electronics component manufacturing and advance semiconductor ambitions. These efforts align with Apple’s strategy to expand its production capabilities in India, where it now assembles its entire iPhone range, including premium models.
As of now, Apple holds nearly an 8% market share in India’s smartphone market, with sales reaching almost $8 billion (around ₹68,877 crore) in fiscal 2024. The company’s growing presence in India not only reflects its commitment to diversifying its supply chain but also highlights the potential of the Indian market as a significant player in the global technology landscape.
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