Apple Boosts iPhone Production in India Amid China Shift

$22 Billion Worth of iPhones Assembled in India in One Year

Apple Inc. significantly increased its iPhone production in India. It assembled devices worth approximately $22 billion during the 12-month period ending March 2025. This marks nearly a 60% increase from the previous year. It highlights Apple’s expanding footprint in the South Asian nation. The growth occurs amid ongoing efforts to diversify beyond China.

India Now Accounts for 20% of iPhone Output

According to sources familiar with the matter, Apple now manufactures one out of every five iPhones in India. The production volume accounts for around 20% of the company’s global output. This marks a major milestone in Apple’s gradual supply chain transition from China. The reported figures reflect factory-level estimates, not retail pricing.

Accelerating Shift From China to India

Apple began exploring alternative production hubs during the COVID-19 pandemic. Strict lockdowns in China disrupted its operations. This was particularly evident at its largest manufacturing sites. Since then, India has emerged as a preferred destination. Major suppliers like Foxconn, Tata Group, and Pegatron are ramping up local operations.

Exports Reach ₹1.5 Trillion

India’s Technology Minister confirmed that Apple exported ₹1.5 trillion ($17.4 billion) worth of iPhones in the latest fiscal year. Much of this output goes to the United States. Apple increasingly depends on its Indian supply chain to meet U.S. demand.

Impact of U.S. Tariff Exemptions

Apple’s Indian exports received a further boost after the U.S. government, under former President Donald Trump, exempted electronic goods—including smartphones—from new reciprocal tariffs. While broader duties on Chinese imports remain in place, the exemption ensures that Indian-made iPhones can enter the U.S. without additional levies for now.

Challenges in Moving Away from China

Despite this progress, Apple continues to depend heavily on its Chinese manufacturing network, which includes over 200 suppliers. Experts believe that fully shifting away from China could take years. An estimate back in 2022 that even relocating 10% of production would require up to eight years.

India’s Growing Appeal as a Tech Hub

Apple now manufactures its complete iPhone lineup in India, including high-end Pro models. This success is backed by government incentives under Prime Minister Narendra Modi’s ‘Make in India’ initiative. This initiative aims to establish India as a global manufacturing powerhouse.

To further this goal, the Indian government is offering $2.7 billion in incentives to boost domestic production of electronic components and develop a semiconductor ecosystem.

Apple’s Rising Market Share in India

Apple holds nearly an 8% share of India’s smartphone market. In fiscal year 2024, the company generated around $8 billion in revenue from the country. This was primarily through iPhone sales. It is a testament to its growing influence in the Indian tech landscape.