Apple has expanded its iPhone manufacturing capabilities in India, now producing approximately 25% of its global output in the country, after increasing local output by 53% compared to the previous year, reported Bloomberg.
This development signifies the company's strategic shift to reduce reliance on China and mitigate associated tariffs.
According to sources familiar with the matter, in 2025, the company assembled around 55 million iPhones in India, up from 36 million in 2024.
Worldwide, Apple manufactures between 220 million and 230 million iPhones annually, with India’s contribution rising substantially.
The shift towards Indian manufacturing follows ongoing US tariffs on Chinese exports amid the trade dispute between the two countries, which has prompted Apple and its suppliers to relocate a greater share of production for the American market outside China.
India has emerged as a significant alternative, driven partly by government production-linked incentive programmes aiming to boost electronics manufacturing and exports.
Although Apple continues to produce most iPhones in China, costs for components and assembly remain higher in India compared to China and Vietnam.
This cost disparity has led manufacturers such as Apple and Samsung Electronics to seek further support from the Indian government.
Talks are ongoing regarding additional incentives as existing smartphone subsidies are set to expire on 31 March.
Changes in US policy regarding tariffs on Chinese exports are also influencing these discussions as India seeks to maintain competitiveness.
Apple currently assembles all models of the latest iPhone 17 series in India, including Pro and Pro Max variants.
Local suppliers such as Foxconn Technology Group, Tata Electronics and Pegatron also manufacture earlier models like the iPhone 15 and iPhone 16 for domestic sales and export markets.
In addition to device assembly, Apple is expanding its partnerships with local suppliers to produce components such as lithium-ion cells, enclosures for phones and watches, as well as accessories including AirPods.
