Quarter of iPhones now made in India

Government incentives and trade tensions have fuelled this shift away from China

Trade

Image: Apple

Apple has significantly increased iPhone production in India, aiming to reduce its dependence on China and circumvent trade conflicts. By 2025, Apple assembled about 55 million iPhones in India, up 53% from the previous year, representing about 25% of global iPhone production.

This expansion is being driven by several factors. Indian Prime Minister Narendra Modi has introduced manufacturing-related incentives to attract manufacturers and turn the country into a global manufacturing hub. These subsidies help offset India’s higher production costs compared to countries like China and Vietnam, which have more established supply chains and logistical advantages.

The trade war between the United States and China and subsequent import tariffs on Chinese goods further motivated Apple to diversify its manufacturing base. Looking for alternative locations to assemble iPhones for the US market, Apple saw India as a promising option.

Despite progress, India still faces challenges in achieving cost parity with other manufacturing hubs. To address this, Apple and other companies like Samsung are actively working with the Indian government to secure additional incentives that support export growth.

Currently, all models of the latest iPhone 17 series are assembled in India, including the high-end Pro and Pro Max versions. Apple’s suppliers in the country, such as Foxconn, Tata Electronics and Pegatron, also produce older models like the iPhone 15 and iPhone 16 for both local sales and exports.

This increase in production underlines Apple’s long-term strategy to establish a second major iPhone production base to meet global demand. Apple is actively strengthening its partnerships with local suppliers to produce critical components such as lithium-ion cells, phone cases and accessories such as AirPods.

In addition to manufacturing, Apple is also aggressively pursuing market share growth in India, where sales exceed $9 billion. The company plans to launch Apple Pay in India later this year and is expanding its retail network, which currently consists of six shops. This underlines India’s increasing importance as a manufacturing hub and fast-growing consumer market for Apple.

Business AM

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