Apple Shifts 25 Percent of iPhone Production to India

Apple Inc. expanded its Indian manufacturing operations in 2025, assembling approximately 55 million iPhones. This represents a 53 percent increase from the 36 million units produced the previous year and accounts for roughly 25 percent of the company's global annual output of 220 million to 230 million devices.

The strategic pivot aims to reduce dependence on China and mitigate risks associated with U.S.-China trade tensions and import tariffs. To offset structural cost and logistics disadvantages compared to China and Vietnam, Apple utilized production-linked incentives introduced by Prime Minister Narendra Modi. The company and Samsung Electronics are reportedly seeking additional government incentives to further support export growth.

Apple currently assembles the entire iPhone 17 lineup, including Pro and Pro Max models, alongside the iPhone 15 and 16 series. These operations are managed through partners Foxconn Technology Group, Tata Electronics, and Pegatron Corp. The company is also working to manufacture components like lithium-ion batteries and accessories locally.

Beyond assembly, Apple is targeting the Indian consumer market, where sales have surpassed $9 billion. The company plans to launch Apple Pay later this year. In 2025, iPhones became India's most valuable export item, totaling approximately $23 billion.