In a major realignment of its global supply chain, Apple Inc is now manufacturing iPhones worth $22 billion in India, marking a significant shift away from its long-standing production base in China. According to a Bloomberg report, nearly 20 per cent of Apple’s global iPhone output now comes from India — a remarkable leap driven by geopolitical tensions, pandemic-related disruptions, and strategic diversification.
The ramp-up was initiated by severe COVID-19 lockdowns in China that disrupted operations at Apple’s largest plant, compelling the tech giant to reduce its overdependence on the country. A large share of these iPhones are assembled at Foxconn Technology Group’s facility in southern India, with Tata Group’s electronics arm also emerging as a key contributor.
India Exports $17.4 Billion Worth of iPhones
India’s role in Apple’s supply chain has grown beyond assembly. The company exported Rs 1.5 lakh crore worth of iPhones, or around $17.4 billion, in the fiscal year ending March 2025. A major boost to this came after the US government, under President Donald Trump, implemented ‘reciprocal’ tariffs — prompting Apple to prioritise India-made iPhones for the American market.
Thanks to this shift, shipments from India to the US have surged, particularly after iPhones assembled in India were exempted from the US tariffs, unlike goods coming from China.
Supply Chain Diversification: A Long-Term Strategy
Apple’s move is part of its broader strategy to diversify its manufacturing footprint beyond China. While the transition is expected to take time — up to eight years to shift even 10% of its China-based capacity, according to Bloomberg Intelligence — India is well-positioned to gain.
The Indian government has rolled out $2.7 billion in incentives under its production-linked incentive (PLI) scheme to boost electronics manufacturing. India’s ambition to become a global hub for electronics is further supported by its zero-tariff policy on smartphone, laptop, and tablet exports to the US.
India’s Competitive Edge Over China
According to the India Cellular and Electronics Association (ICEA), which includes Apple, Foxconn, Xiaomi, Dixon, and Lava among its members, both India and Vietnam enjoy a 20% pricing advantage in the US market over Chinese-made smartphones, due to the absence of tariffs.
Vietnam similarly exports Samsung smartphones to the US without duties, but Apple’s scale in India is quickly catching up.
Apple’s Growing Presence in India
Apple’s local strategy isn’t limited to exports. The company is expanding its footprint in the Indian consumer market, where it now commands nearly 8 per cent of the smartphone market share, with sales approaching $8 billion in FY24.
Source: News18