Apple’s long‑term strategy to diversify its global supply chain is gathering pace, with India emerging as a key manufacturing hub for the tech giant.
Citing people familiar with the matter, Bloomberg reported that Apple now produces roughly a quarter of all iPhones in India, a significant jump that reflects both geopolitical realities and the country’s growing role in global electronics manufacturing.
The increase in production underscores how shifting trade dynamics, particularly tensions between the United States and China, are reshaping the way global technology companies organise their supply chains.
India’s Share Of Global iPhone Production Surges
Apple assembled around 55 million iPhones in India in 2025, a sharp rise from 36 million units the previous year, according to the report. The company produces approximately 220 million to 230 million iPhones globally each year, meaning India’s share of total production has climbed rapidly.
This expansion highlights Apple’s strategic push to build a second large manufacturing base outside China. For years, China has been the backbone of Apple’s production ecosystem, but trade tensions and tariff uncertainties have forced companies to rethink concentration risks.
India’s growing contribution now accounts for about 25 per cent of global iPhone output, making it one of the most important alternative manufacturing destinations for the Cupertino‑based company.
Trade Tensions Accelerate Apple’s Supply Chain Shift
The shift towards India has accelerated in recent years as Apple seeks to minimise exposure to tariffs linked to the ongoing US‑China trade tensions.
In 2025, shipments from China faced headwinds due to tariffs imposed during the trade dispute between the world’s two largest economies. These levies encouraged Apple and its manufacturing partners to shift more production of devices intended for the US market to alternative locations.
India has emerged as a major beneficiary of this shift. While China continues to produce the majority of Apple’s devices, the company has steadily increased production capacity in India to diversify risk and ensure smoother global supply chains.
Government Incentives Boost Local Manufacturing
India’s rise as an electronics manufacturing hub has been strongly supported by government policy. Prime Minister Narendra Modi’s production‑linked incentive (PLI) schemes for electronics manufacturing have played a key role in attracting global technology firms.
The subsidies are designed to offset some of the structural challenges manufacturers face in India. These include higher logistics costs and the absence of the highly integrated supplier ecosystem that exists in China.
Even with these challenges, the incentives have helped global companies scale production in the country and expand export capacity.
India Still Faces Cost Challenges
Despite the rapid growth in production, electronics manufacturing in India remains relatively more expensive compared with established hubs such as China and Vietnam.
Industry participants note that supply chain gaps, infrastructure limitations and logistics inefficiencies continue to add to production costs. These challenges have prompted companies such as Apple and Samsung Electronics to seek continued government support to maintain competitiveness.
Discussions are already underway between manufacturers and the Indian government regarding a potential new round of incentives to support export growth, particularly as the current smartphone production subsidy programme is set to expire on March 31.
The urgency has increased following developments in the United States. After the US Supreme Court struck down certain duties affecting China, India must move quickly to ensure it remains an attractive alternative manufacturing destination.
A Growing Ecosystem Of Apple Suppliers
Apple’s expanding production footprint in India is supported by a growing network of suppliers.
Major partners such as Foxconn Technology Group, Tata Electronics and Pegatron Corp assemble the latest iPhone models in India. The facilities currently produce all variants of the iPhone 17 lineup, including the premium Pro and Pro Max models.
These suppliers also manufacture earlier models, such as the iPhone 15 and iPhone 16, for both domestic sales and exports.
Apple is also working to deepen local supply chains by sourcing additional components from Indian partners. This includes items such as lithium‑ion battery cells, device enclosures and accessories like AirPods.
The broader objective is to create a more complete manufacturing ecosystem within the country, reducing reliance on overseas suppliers.
India Becomes A Key Market For Apple
Apple’s strategy in India is not limited to manufacturing alone. The company is also increasingly focused on expanding its presence in one of the world’s fastest‑growing smartphone markets.
Sales in India have surged past $9 billion, highlighting the country’s growing importance as a consumer market. Apple is planning to launch Apple Pay in India later this year, signalling deeper engagement with the country’s digital payments ecosystem.
The company has also been strengthening its retail footprint. Apple now operates six retail stores across India, reinforcing its commitment to long‑term growth in the region.
