India Ramps Up iPhone Production to 60%, Captures 20% of Apple's Global Output

Apple's iPhone production in India has seen a massive 60% surge, reaching 1.89 lakh crore in the financial year 2024-25, reported news agency IANS. Of this, ₹1.5 lakh crore worth of iPhones were exported, marking a significant shift in Apple's global supply chain.

This growth is largely driven by Apple's expanding manufacturing footprint in India, with Foxconn, Tata Electronics, and Pegatron playing key roles. The US-China tariff war has also contributed to Apple's decision to ramp up production in India, as lower US tariffs on India-made smartphones give the company a strategic advantage.

India's smartphone exports hit ₹1.75 lakh crore ($21 billion) in April-February 2024-25, with Apple accounting for 70% of these exports. The Production Linked Incentive (PLI) scheme has been instrumental in attracting foreign tech giants like Apple, helping India emerge as a major electronics manufacturing hub.

 

This shift could mean more locally assembled iPhones for Indian consumers and a stronger presence for Apple in the Indian market.

In February this year, India —for the first time — started exporting electronic components for Apple products to China and Vietnam, marking a notable shift from a net importer to an exporter of these components.

India's iPhone production has grown significantly, but it still lags behind China in overall scale. Apple has assembled $22 billion worth of iPhones in India in the past year, marking a 60% increase. Now, 20% of Apple's global iPhone output comes from India.

China, however, remains Apple's largest manufacturing hub, with nearly 200 suppliers deeply embedded in its supply chain. While Apple is diversifying, experts estimate it could take up to eight years to shift just 10% of its production capacity away from China.

One major advantage for India is zero tariffs on iPhones exported to the U.S., while China faces cumulative tariffs of massive 145%. This makes India a cost-effective alternative for Apple, especially as geopolitical tensions continue to impact global trade.

In February this year, it was reported that Apple Intelligence is launching in India in April 2025. Initially, it will support localized English tailored for Indian users. 

Besides, in early this month, Air India integrated Apple AirTag with its baggage-tracking system and mobile app to securely track the location of its flyers' baggage.