Shifting production away from China, Apple now makes one in four iPhones in India, reflecting the country’s growing role in global supply chains.
Apple Inc produced around 25% of its iPhones in India in 2025; a significant pivot away from China as trade tensions and tariffs reshaped global supply chains. According to a Bloomberg report, the company assembled about 55 million iPhones in India in 2025, up from 36 million the previous year. Apple’s global output stands at roughly 220-230 million units annually, with India’s share rising rapidly.
The expansion has been supported by the government’s production-linked incentive (PLI) scheme, designed to attract global manufacturers. These subsidies have helped offset India’s higher assembly and component costs relative to China and Vietnam, where supply chains are more established.
Apple’s suppliers in India include Foxconn Technology Group, Tata Electronics and Pegatron Corp, which produce both the latest iPhone 17 models and earlier versions such as the iPhone 15 and 16. The company is also deepening partnerships with local firms to manufacture components, including lithium-ion cells, enclosures and accessories.
The shift comes as Apple faces headwinds in China, where US tariffs on exports to the US have prompted the company to diversify production. India has emerged as a key alternative, though challenges remain in logistics and cost competitiveness.
Industry discussions are underway with the Indian government about extending incentives beyond March 31, 2026, when current subsidies expire.
Beyond manufacturing, Apple is strengthening its presence in India’s consumer market, where sales have exceeded US$9 billion. The company operates six retail stores and plans to launch Apple Pay later this year, underlining India’s growing importance as both a production hub and a fast-expanding market.
Apple declined to comment on the production figures, but the rising output highlights its long-term strategy to establish India as a second major base for iPhone manufacturing.
