Apple iPhone Production in India Rises, China Slows Down
Apple iPhone production in India is now growing rapidly, as the world’s leading technology company Apple has started positioning India as a primary hub for manufacturing iPhones. A large share of iPhones for the U.S. market are now being made here. This strategy is seen as a significant move to reduce reliance on China and to avoid U.S. tariffs.
Apple iPhone production in India is not only benefiting the company but also proving crucial for India’s manufacturing sector. It is helping India emerge as a strong player on the global tech manufacturing map.
Why Did Apple Change Its Strategy?
In recent years, trade tensions and tariff conflicts between the U.S. and China have intensified. Particularly under the Trump administration, the U.S. imposed heavy tariffs on several products imported from China. This increased pressure on major brands like Apple to reduce their dependence on China for their supply chain.
India, with its rapidly growing manufacturing capacity and government initiatives like “Make in India,” emerged as a natural choice for Apple.
iPhone Production Expands in India, Pro Models Now Being Made
Currently, Apple iPhone production in India accounts for nearly 20% of the company’s global output. Companies like Foxconn, Tata Electronics (formerly under Pegatron), and Wistron are manufacturing iPhones for Apple in Tamil Nadu and Karnataka. Significantly, these units are now producing the company’s most premium models — the Pro and Pro Max versions — which were previously manufactured only in China.
Apple’s long-term goal for iPhone production in India is even more ambitious. Over the next three to five years, Apple aims to shift 50% of its total iPhone production to India. The plan also includes producing the iPhone 17 — expected to launch in 2026 — simultaneously in India and China. If achieved, this would mark the first time in Apple’s history that a flagship iPhone is produced Day-1 outside China.
iPhone Exports from India Surge, China Left Behind
According to a Bloomberg report, around 78% of iPhones sold in the U.S. are now being directly exported from India — surpassing China. In the first half of 2025 alone, iPhone exports from India rose by 50%. This indicates that India is no longer just a production base but has become a strategic global supply hub.
This shift is part of Apple’s “China Plus One” strategy, aimed at making operations more flexible and reducing risk by developing alternative production locations.
Along with Production, Challenges Rise Too
While the growing iPhone production in India is a positive sign, the journey isn’t entirely seamless. Apple faces two major challenges:
- Meeting High Demand:
Each time a new iPhone is launched, there is a sudden surge in global demand. Meeting immediate requirements for markets like the U.S. solely through India could be challenging. - Uncertainty Over Tariffs:
Although smartphones are currently exempt from U.S. tariffs, the Trump administration had earlier signaled the possibility of imposing up to 25% duty on electronics from India. Experts believe that if this exemption ends, iPhone prices in the U.S. could rise, impacting both consumers and the company.
Apple CEO Tim Cook’s Strategy and Confidence
In an April 2025 interview, Apple CEO Tim Cook stated, “India has now become a central part of our supply chain. The technical expertise, affordable workforce, and supportive government policies have encouraged us to expand here.”
He also added that in the future, Apple will not only expand assembly operations in India but also strengthen high-value functions like Research and Development (R&D).
What Does This Mean for India?
Apple’s increasing investment and production in India represents a major opportunity for the country. It is generating hundreds of thousands of jobs while strengthening India’s position in global tech manufacturing through Apple iPhone production in India.
The central and state governments are further accelerating this growth by providing special economic zones (SEZs), tax incentives, and infrastructure support.
Conclusion
Apple’s new strategy has so far proven effective — the company is gradually reducing its dependence on China, avoiding tariff risks, and better meeting the demand in major markets like the U.S.
However, as Apple iPhone production in India expands, it will be essential to address technological complexities, logistical challenges, and uncertainties in the global political environment.
For India, this is a defining opportunity. If managed in the right direction, the country could, in the coming years, not only strengthen its role in iPhone manufacturing but also emerge as a leading hub for other high-tech products on the global stage.
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