Apple is planning to significantly increase its iPhone production in India, aiming to source the majority of its devices sold in the United States from the country by the end of next year. This strategy reflects Apple’s efforts to diversify its supply chain away from China amidst rising tariffs and geopolitical tensions.
According to sources familiar with the company’s internal plans, this initiative could see Apple’s annual iPhone output in India double to over 80 million units. In the fiscal year concluded in March 2025, the company produced just over 40 million iPhones in India, while its annual sales of the device in the US exceed 60 million.
The shift in production strategy is a continuation of Apple’s move away from reliance on China, which was initiated following extensive Covid-19 lockdowns that disrupted operations at its largest manufacturing facility. Ongoing tariff implications established during former President Donald Trump’s administration and escalating tensions between the US and China have prompted Apple to further amplify this transition.
Representatives for Apple in India have not yet provided comments in response to inquiries. The Financial Times previously reported that the company aims to have all iPhones sold in the US sourced from India by the end of 2026. Bloomberg News has also indicated that a growing percentage of iPhones for US customers will be procured from the Indian supply chain.
In the past year, Apple reportedly assembled approximately $22 billion worth of iPhones in India, marking a nearly 60 percent increase from the previous year. Currently, about 20 percent of Apple’s iPhones are produced in India, although China remains the primary site for Apple’s global manufacturing operations.
The majority of iPhones manufactured in India are put together at the Foxconn Technology Group’s facility located in southern India. Additionally, the Tata Group’s electronics manufacturing division, which acquired Wistron Corp.’s local assets and manages Pegatron Corp.’s operations in the region, plays a vital role in Apple’s supply chain. Both Tata and Foxconn are actively expanding their manufacturing capabilities in southern India.
According to India’s technology minister, during the fiscal year ending March 2025, Apple exported iPhones from India worth approximately 1.5 trillion rupees ($17.5 billion).
After Trump’s announcement of “reciprocal” tariffs earlier this year, shipments of iPhones from India to the US have risen. Throughout the past fiscal year, Apple’s production and export levels from India have surged.
In a recent development, the Trump administration exempted electronics, including smartphones and computers, from the reciprocal tariffs. While this benefits companies like Apple, the exemption does not cover the separate 20 percent tariff imposed on imports from China, which is intended to compel Beijing to take action against fentanyl trafficking.
This exemption means that iPhones assembled in India currently do not incur any additional duties. However, Trump’s earlier tariffs on Chinese goods, which amount to 145 percent cumulatively, are likely to heighten the pressure on companies like Apple to continue shifting aspects of their supply chains away from China.
Apple has successfully started assembling its entire range of iPhones in India, including premium models such as the titanium Pro variants. The company’s growth in production within India is further supported by state incentives aligned with Prime Minister Narendra Modi’s vision of establishing the nation as a key manufacturing hub.
© 2025 Bloomberg LP
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
