Apple assembles $22B iPhones in India, boosts output 60%

Post by: Bandan Preet

Apple has made a major shift in its global production strategy by assembling iPhones worth $22 billion in India in the 12 months ending in March 2025. This marks a 60% increase from the previous year, showing that Apple is steadily reducing its dependence on China and choosing India as an important place to build its popular smartphones.

People close to the matter said that Apple now produces around 20%—or one in every five iPhones—in India. The value mentioned here is based on the estimated factory price of the phones, not the price we see in stores. The move highlights how Apple and its suppliers are working faster to move away from China, especially after strict COVID-19 lockdowns in China affected production badly in the past.

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Most of the iPhones made in India are put together at a large factory owned by Foxconn in southern India. Other important suppliers include Tata Group, which now controls Wistron’s old operations and is handling Pegatron’s work in the country too. These Indian companies are becoming key players in Apple’s global supply chain.

According to the country’s technology minister, Apple exported iPhones worth about 1.5 trillion Indian rupees, which is around $17.4 billion, in the fiscal year that ended in March 2025.

Exports of iPhones from India to the United States picked up speed after former U.S. President Donald Trump announced plans in February for new tariffs, which he called “reciprocal.” To avoid these extra taxes, Apple began sending more phones from India to American customers. Throughout the year, Apple increased both the production and export of iPhones from its Indian factories. People familiar with the situation said that Apple will now focus more on sending iPhones made in India to the U.S. market.

Recently, the Trump administration made a decision to not include electronics such as smartphones and computers in the list of goods that would face these new tariffs. This comes as a relief to companies like Apple and Nvidia, although it does not remove another 20% tax on goods from China, which was added to put pressure on Beijing. The good news is that iPhones made in India are safe from these taxes for now. But overall, most of the new tariffs on Chinese goods still stand at around 145%, which may lead Apple and others to speed up their plans to shift production away from China.

Still, Apple’s supply chain is deeply connected to China, with nearly 200 suppliers based there. So, while Apple is expanding in countries like India, it may take years before the full production process moves out of China. Even though there’s been talk about making iPhones in the U.S., it’s not likely to happen soon due to the lack of skilled labor and the right kind of manufacturing facilities in America.

Apple’s CEO Tim Cook has often praised Chinese workers for their skills in making Apple products. A past estimate suggested that it might take eight full years just to move 10% of Apple’s production away from China, showing how complex the process is.

Now, Apple is building all types of iPhones in India, including the more expensive Pro models that use titanium. India’s support has helped make this happen. Prime Minister Narendra Modi’s push to turn India into a global manufacturing center has played a big role. Apple is also taking advantage of special government programs that offer financial help to companies that make electronics in India.

India’s government is now planning to invest another $2.7 billion to boost its electronics and semiconductor industry. The goal is to expand local production of key parts that go into making smartphones and other gadgets.

While Apple still holds only about 8% of India’s smartphone market, its sales in the country have grown strongly. In the financial year 2024, Apple made nearly $8 billion in sales in India, with most of that coming from iPhone sales.

This strong growth in both production and sales shows how India is becoming more and more important to Apple’s future plans.

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