Apple has increased its iPhone production in India to a massive $22 billion, as the tech giant shifts some of its manufacturing away from China. According to Bloomberg, 20% of all iPhones made globally are now being produced in India.
This change started after the COVID-19 lockdowns in China affected production at Apple’s largest factory. Now, most of the iPhones in India are being assembled at Foxconn’s facility in southern India, with Tata Group also helping in the manufacturing process.
Big Success in Exports
Apple’s Indian operations are not just for local sales—they are exporting a large number of iPhones too. Between April 2024 and March 2025, Apple exported iPhones worth ₹1.5 trillion (about $17.4 billion).
This increase in exports to the U.S. also happened after former U.S. President Donald Trump introduced “reciprocal” tariffs. To avoid extra taxes, Apple began shipping more phones from India to the U.S.
A Long-Term Plan to Diversify Production
Apple’s move is part of a long-term strategy to reduce its dependence on China by diversifying its supply chain. Although this shift will take time—experts say up to 8 years to move just 10% of production—India is playing a key role.
To support this growth, the Indian government is offering $2.7 billion in incentives to boost electronics manufacturing. Also, iPhones made in India are now exempt from U.S. tariffs, making them cheaper for American customers.
Read More: How Apple Is Beating Trump’s Tariffs: 600 Tonnes of iPhones Airlifted from India!
India’s Advantage in the Global Market
India has a major advantage—there are zero tariffs on smartphones like iPhones exported to the U.S. Vietnam also enjoys similar benefits for Samsung products. This gives both countries a 20% price edge over smartphones made in China.
The India Cellular and Electronics Association (ICEA), which includes Apple, Foxconn, Xiaomi, and others, says this pricing edge is helping India become a top electronics exporter.
Apple’s Growing Market in India
Apart from production, Apple is also growing its market share in India. In fiscal 2024, Apple sold nearly $8 billion worth of iPhones in the country and now holds about 8% of the Indian smartphone market.
Conclusion
Apple’s strong focus on iPhone production in India is reshaping its global supply chain. With support from the Indian government, rising exports, and growing sales in India, Apple is steadily reducing its reliance on China while boosting its presence in one of the world’s fastest-growing markets.
