In the fiscal year ending March 2025, Apple manufactured iPhones in India worth $22 billion (approximately Rs. 1,89,412 crore), marking a nearly 60 percent increase in production compared to the previous year. This growth underscores Apple’s ongoing strategy to diversify its production capabilities beyond China.
According to sources familiar with the situation, who requested anonymity due to the confidential nature of the information, Apple now produces 20 percent, or one in every five, of its iPhones in India. This value reflects the estimated factory price of the devices, not their retail prices.
The surge in production indicates a swift shift by Apple and its suppliers towards Indian manufacturing, a trend initiated when severe Covid-19 lockdowns disrupted operations at its largest factory in China. Most of the iPhones assembled in India come from Foxconn Technology Group’s plant in the southern region of the country. Additionally, Tata Group’s electronics manufacturing division, which has taken over Wistron Corp. and supervises Pegatron Corp.’s activities, plays a crucial role in the supply chain.
Apple did not provide comments when approached outside regular office hours.
During the same fiscal period, Apple exported 1.5 trillion rupees (about $17.4 billion) in iPhones from India, as reported by the country’s technology minister on April 8.
The rate of iPhone shipments from India to the United States increased following President Donald Trump’s announcement of “reciprocal” tariffs in February. Throughout the fiscal year leading up to March, Apple consistently expanded its production and export activities from India.
Reports indicate that Apple is set to prioritize iPhones produced in India for its U.S. market.
Late on a Friday, the Trump administration exempted various electronics, including smartphones and computers, from these reciprocal tariffs. This exemption benefits companies like Apple and Nvidia; however, it does not relieve them from a separate 20 percent tariff on imports from China aimed at pressuring Beijing over issues such as fentanyl trafficking.
As things currently stand, iPhones manufactured in India will not face any tariffs. Despite these recent exemptions, Trump’s overall tariffs on China have reached 145 percent, suggesting that Apple and other companies may continue to accelerate their supply chain transitions.
Nevertheless, with nearly 200 suppliers heavily reliant on Chinese operations, significant relocation of production could take significant time to materialize. While Trump has expressed a desire to see iPhones manufactured in the U.S., practical challenges, including limited manufacturing facilities and skilled labor, hinder Apple’s ability to shift production there in the near future.
Apple CEO Tim Cook has frequently acknowledged the high level of skill and expertise present in China’s manufacturing sector. Estimates published by Bloomberg Intelligence in 2022 suggested that shifting just 10 percent of Apple’s production capacity out of China could take up to eight years.
Currently, Apple assembles its entire line of iPhones in India, including the premium titanium Pro models. The company’s growth in India is supported by government subsidies linked to Prime Minister Narendra Modi’s goal of transforming the nation into a manufacturing powerhouse.
Modi’s initiatives also aim to boost electronics component production through a $2.7 billion (around Rs. 23,246 crore) financial incentive plan, while also focusing on advancements in the semiconductor sector.
Apple holds almost an eight percent share of India’s smartphone market, with its sales, predominantly from iPhones, nearing $8 billion (approximately Rs. 68,877 crore) in fiscal 2024.
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