Apple Now Assembles One In Five iPhones In India As Manufacturing Focus Shifts From China: Report

Apple has been steadily shifting operations to India since COVID-related lockdowns severely impacted production at its largest Chinese facility.

Despite Apple's growing India footprint, the company relies on nearly 200 suppliers globally — the majority still rooted in China.

Source : Apple

Apple Inc. has reportedly increased its iPhone manufacturing operations in India, assembling devices worth $22 billion in the year ended March — a nearly 60 per cent jump from the previous year. The expansion underlines Apple’s strategic pivot away from China, as it ramps up efforts to de-risk its supply chain amid geopolitical and operational headwinds.

Citing sources in the know, Bloomberg reported Apple now produces 20 per cent of its total iPhone output in India, marking a significant milestone in the company’s diversification journey. The estimated value refers to the factory gate price of the smartphones, not their retail value. The majority of these units are assembled at Foxconn’s sprawling facility in southern India. Meanwhile, Tata Group is also a key player in this ecosystem, managing Pegatron’s operations, after taking over Wistron Corp.’s business.

Apple has been steadily shifting operations to India since COVID-related lockdowns severely impacted production at its largest Chinese facility. This momentum is further supported by Indian government incentives aligned with Prime Minister Narendra Modi’s broader manufacturing push.

India-Made iPhones Gain Ground In Global Shipments

The South Asian nation has not just become a vital manufacturing base but also a major export hub. India shipped out Rs 1.5 trillion ($17.4 billion) worth of iPhones in the fiscal year through March 2025, as revealed by the country’s technology minister on April 8. Exports to the US surged, especially following former President Donald Trump’s announcement of reciprocal tariffs in February — a move that influenced how Apple structured its outbound shipments.

While a recent exemption on electronics goods, including smartphones and computers from Trump’s broader tariff regime has brought relief to firms like Apple and Nvidia Corp., a separate 20 per cent duty on Chinese imports remains. With cumulative tariffs on China sitting at 145 per cent, pressure continues to mount on Apple and other multinationals to hasten their shift away from Chinese manufacturing.

Still, any rapid transition remains unlikely. Despite Apple's growing India footprint, the company relies on nearly 200 suppliers globally — the majority still rooted in China. Structural challenges like limited skilled labour and infrastructure gaps are likely to delay large-scale shifts to markets such as India. According to a Bloomberg Intelligence estimate from 2022, relocating just 10 per cent of Apple’s production outside China could take up to eight years.

India’s Role Expands In Apple’s Global Strategy

All iPhone models — including the high-end titanium Pro versions — are now assembled in India, reinforcing the country’s significance in Apple’s global operations. This shift has been buoyed by production-linked incentives offered by the Indian government. Modi’s administration is also stepping up efforts in electronics component manufacturing, with a fresh $2.7 billion package to boost the semiconductor sector.

In India’s growing smartphone market, Apple holds an 8 per cent share. The company recorded nearly $8 billion in sales for fiscal 2024, with the iPhone leading the charge.