Apple’s shift toward India as a key manufacturing hub has gained significant momentum, with the country now accounting for nearly a quarter of the company’s global iPhone production. The move reflects Apple’s broader strategy to diversify its supply chain beyond China and reduce exposure to geopolitical tensions and trade disruptions.
According to people familiar with the matter, the company assembled about 55 million iPhones in India in 2025, up from 36 million a year earlier, marking a substantial increase in local production capacity. Apple manufactures about 220 million to 230 million iPhones annually worldwide, and India’s share of that total has been expanding rapidly in recent years.
The surge in output highlights India’s growing role in the global electronics manufacturing ecosystem, driven by government incentives and rising investments from major technology suppliers.
India has become central to Apple’s long-term manufacturing strategy as the company seeks to build a second large production base outside China. Over the past few years, the tech giant has increased investments and strengthened partnerships with suppliers operating in India.
Apple’s expansion in India has been supported by the Indian government’s Production-Linked Incentive (PLI) scheme, launched to boost domestic manufacturing and transform India into a global electronics production center.
The policy initiative, championed by Prime Minister Narendra Modi, offers financial incentives to companies that increase their local manufacturing output and exports.
These subsidies have helped offset structural challenges that manufacturers face in India, such as:
Limited component supply chains compared with China
Higher logistics and transportation costs
Infrastructure gaps in certain manufacturing clusters
Despite these hurdles, the incentives have encouraged major global manufacturers to expand their footprint in India.
Global geopolitical developments have also played a significant role in Apple’s manufacturing diversification.
In 2025, shipments from China, where Apple still makes the bulk of iPhones, faced headwinds as a result of US tariffs related to the two economic powers’ trade war. These tariffs increased pressure on Apple and its suppliers to relocate some manufacturing operations to alternative countries.
India has emerged as one of the most promising destinations for this shift, thanks to its growing industrial ecosystem and supportive government policies.
An Apple spokesperson declined to comment on the latest production figures.
Although Apple’s manufacturing presence in India has grown significantly, the country still faces cost disadvantages compared with established electronics hubs.
Electronics assembly and component manufacturing remain relatively expensive in India compared with countries such as China and Vietnam. These higher costs have led major technology companies, including Apple and Samsung Electronics, to seek additional support from the Indian government.
Industry stakeholders are currently discussing with policymakers the possibility of another round of incentives aimed at strengthening export competitiveness.
India’s existing smartphone production subsidies are scheduled to expire on March 31, raising concerns that manufacturers could face higher costs unless new policies are introduced.
Adding to the urgency, the US Supreme Court recently struck down some of the duties affecting China, potentially restoring China’s competitive advantage in global electronics manufacturing.
Apple has made notable progress in expanding the range of products manufactured in India.
The Cupertino, California-based company currently assembles all versions of the latest iPhone 17 lineup in India, including the high-end Pro and Pro Max models.
Apple’s Indian supply chain includes several key partners responsible for assembling devices and producing components:
Tata Electronics
Pegatron Corp.
These companies not only assemble the latest flagship models but also manufacture older devices such as the iPhone 15 and iPhone 16 for both domestic sales and exports.
Apple’s India strategy extends beyond simple device assembly. The company is gradually building a broader ecosystem of local suppliers capable of producing critical components.
Local production is expanding to include:
Lithium-ion battery cells
Apple Watch and iPhone enclosures
Accessories such as AirPods
By increasing local component manufacturing, Apple aims to reduce reliance on overseas suppliers and strengthen the resilience of its global supply chain.
India is not only becoming a manufacturing hub for Apple but also an increasingly important consumer market.
Apple’s sales in the country have grown rapidly in recent years, with revenue from the Indian market surging past $9 billion.
The company is expanding its physical retail presence and digital services across the country.
Apple currently operates six retail stores in India.
The company is preparing to launch Apple Pay in India later this year, which could further boost its ecosystem adoption.
These developments underscore Apple’s long-term commitment to the Indian market, both as a production base and as a fast-growing customer base.
Apple’s growing manufacturing presence in India marks a major shift in the global technology supply chain. With about 55 million iPhones assembled in the country in 2025, India now accounts for roughly 25% of Apple’s global iPhone production, a dramatic rise in just a few years.
Government incentives, geopolitical tensions, and the need for supply chain diversification have all contributed to this transformation. While challenges such as higher production costs and supply chain gaps remain, India’s rapidly expanding electronics ecosystem positions it as a crucial partner in Apple’s long-term global strategy.
If supported by continued policy incentives and infrastructure development, India could soon become one of the world’s largest smartphone manufacturing centers.