Apple to Shift Major iPhone Production to India, Targeting US Market

Apple is reportedly gearing up to transform India into its key manufacturing hub for iPhones destined for the US. If the plan materializes, most iPhones sold in the United States by the end of 2025 could be manufactured in India, according to sources cited by Bloomberg.

The tech giant is expected to nearly double its production capacity in India to meet this ambitious target. At present, about 20% of Apple’s global iPhone output is already produced in India, but that share is set to increase significantly.

Strategic Shift: Apple Looks Beyond China

Why Apple Is Shifting Focus from China to India

Apple’s diversification away from China isn’t sudden. The company began expanding its India operations a few years ago after Covid-related lockdowns disrupted its Chinese production facilities. Trade frictions between the US and China, coupled with earlier tariffs under the Trump administration, also played a role in prompting this strategic move.

"The strategy is not new, but the scale is."

India’s appeal lies in both political and economic factors. With ongoing US-China trade tensions, Apple appears increasingly keen to localize manufacturing in friendlier, more stable regions.

Rising Production and Exports from India

Apple’s India operations have already seen a massive surge. In the financial year ending March 2025, Apple manufactured devices worth nearly $22 billion in India, out of which exports accounted for about ₹1.5 trillion (approximately $17.5 billion).

“In the last financial year ending March 2025, Apple’s India production surged. The tech giant reportedly manufactured devices worth approximately $22 billion in India, with exports alone crossing Rs 1.5 trillion (about $17.5 billion).”

Major Players in India’s iPhone Supply Chain

The bulk of this manufacturing is being carried out by Foxconn, which runs a massive production facility in South India. Another key contributor is Tata Electronics, which now handles the operations that were earlier managed by Wistron and Pegatron. These companies are playing a vital role in Apple’s India growth story.

Building Premium iPhones in India

Apple is now assembling all models of iPhones in India, including the premium Pro variants that feature titanium frames. This represents a major milestone not just for Apple but also for India’s high-end electronics manufacturing capabilities.

“The company is now building all iPhone models in India, including the high-end Pro variants made with titanium frames.”

Government Support & Future Potential

India’s Push for Local Manufacturing

The Modi government’s Production-Linked Incentive (PLI) scheme and other supportive policies have made India an attractive destination for tech manufacturing. The alignment between Apple’s strategy and India’s ‘Make in India’ vision seems to be paying dividends.

“Government incentives and policy support have helped attract global tech companies, aligning well with Prime Minister Narendra Modi’s push to make India a manufacturing powerhouse.”

What This Means for the Future

If Apple successfully carries out this strategy, it will be among the first leading consumer technology firms to supply the US market extensively through manufacturing operations based in India.  While China continues to be the biggest production hub, this shift may mark the beginning of a gradual rebalancing of Apple’s global supply chain.

“While China remains the largest production hub for now, the balance may be starting to change.”

Conclusion: A Strategic Realignment with Global Implications

Apple’s decision to significantly expand its iPhone manufacturing operations in India marks a turning point in the global technology supply chain. By aiming to make India the primary supplier for iPhones sold in the US, Apple is not only diversifying its production base but also signalling a long-term commitment to Indian manufacturing.

With supportive government policies, a rapidly developing electronics ecosystem, and key players like Foxconn and Tata Electronics driving the shift, India is well-positioned to become a global hub for premium tech products. As geopolitical and economic uncertainties continue to affect traditional manufacturing bases like China, Apple’s India strategy could serve as a model for other global tech giants seeking both resilience and scalability.

If Apple meets its ambitious goal of doubling production by the end of 2025, this move may redefine the future of how and where high-end consumer electronics are made—and India will be at the centre of that transformation.