Apple deepens India manufacturing, shifts $22 billion iPhone production from China

Apple is fast-tracking its transition away from China as the heart of its manufacturing empire, with India emerging as a critical pillar of its global supply chain. The tech giant now produces a staggering $22 billion (approximately Rs 1.89 trillion) worth of iPhones annually in India, according to a Bloomberg report, signifying that 20 per cent of Apple’s global iPhone output (or one in five iPhones) is now “Made in India”.

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This manufacturing shift has been years in the making but gained momentum during the COVID-19 pandemic, when lockdowns disrupted operations at Apple’s primary Chinese assembly facilities. Since then, Apple has doubled down on its India operations, primarily through assembly partner Foxconn’s massive facility in southern India and with growing support from Tata Group’s electronics division.

India is now a major export engine for Apple

Beyond local assembly, India is now a major export engine for Apple. The company shipped iPhones worth approximately $17.4 billion (approximately Rs 1.5 trillion) overseas in the fiscal year ending March 2025. A significant chunk of these exports is now heading to the US, driven by trade policy shifts under former President Donald Trump.

This move dovetails with Apple’s broader goal of supply chain diversification. It is an increasingly strategic necessity amid global trade tensions. While Apple’s shift away from China will be slow, Bloomberg Intelligence estimates it may take eight years to relocate just 10 per cent of its China capacity, the momentum is unmistakable.

Recent tariff exemptions for Indian-made iPhones entering the US market have further strengthened Apple’s resolve. Unlike Chinese exports, which still face levies, smartphones, tablets, and laptops shipped from India enter tariff-free.

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Apple’s India play isn’t just about production; demand is rising, too. The company’s market share in India climbed to nearly 8 per cent in fiscal 2024, with sales reaching close to $8 billion (approximately Rs 69,000 crore). That’s a powerful signal of India’s dual role in Apple’s future: as both a factory floor and a key consumer market.

As Apple continues to rebalance its global supply chain, India’s role is no longer just a backup. It’s becoming central to the company’s next phase of growth.