Apple produced $22 billion worth of iPhones in India in the 12 months through March 2025 — a staggering 60% jump from the prior year, according to a Bloomberg report. That means 1 in every 5 iPhones globally is now made in India, a sharp climb from near-zero just a few years ago.
The iPhones are built across factories in Tamil Nadu and Karnataka, mostly by Foxconn, Apple’s biggest manufacturing partner globally. Tata Electronics and Pegatron also contribute to this growing output.
Apple exported $17.4 billion worth of iPhones from India during the same period, according to IT minister Ashwini Vaishnaw, underscoring New Delhi’s emergence as a key export hub for Apple’s global supply chain.
Why it matters
- This surge is a strategic retreat from China, born out of pandemic disruptions, supply chain vulnerabilities, and escalating tensions with the US. Apple’s manufacturing diversification, once incremental, is now in overdrive — driven in large part by President Donald Trump’s tariff offensive on Chinese electronics, which currently sits at 145%.
- Apple leaned into India as Covid lockdowns crippled China-based factories, including its largest iPhone plant.
- After Trump announced “reciprocal tariffs” in February, Apple reportedly accelerated US-bound shipments from India.
- A last-minute exemption on smartphones offered temporary relief, but the broader uncertainty remains.
- For Apple, India offers more than escape from China. It provides access to a growing domestic market, one in which Apple’s smartphone sales hit $8 billion in fiscal 2024, per Bloomberg, despite holding only 8% of market share. The iPhone, aspirational and elite, still holds sway in India’s rising middle class.
- Apple hasn’t publicly addressed its India pivot, but its actions speak volumes: The company now assembles its entire iPhone range, including premium titanium Pro models, in India.
The big picture
As per a WSJ report, Apple’s move fits squarely within CEO Tim Cook’s “long arc of time” mantra — a strategic philosophy that prizes long-term resilience over short-term gains.
When Apple’s market cap plunged nearly $800 billion following tariff announcements, Cook stayed quiet in public, but rushed Indian-made iPhones to US shores, according to the WSJ. The reprieve from tariffs came late on a Friday, after intense pressure from Apple and a jittery stock market.
“In the long arc of time, people change their mind on companies, but we’ve always suited up and fought,” Cook said in 2013.
In 2023, he told analysts, “If you look at it over a long arc of time, I think there’s a good opportunity across the board.”
Over the years, Cook has time and again leaned into the “long arc of time” mantra when facing in-the-moment challenges. In that, he’s a contrast to typical tech-industry leaders preaching short-term “ship and fix” strategies. Cook’s language evokes the famed quote from his personal hero, civil-rights leader Martin Luther King Jr, who said: “The arc of the moral universe is long, but it bends toward justice.”
An article in Wall Street Journal
His patience is paying off. Apple’s $22 billion India output now rivals production volumes from its earlier-phase China factories. The government is helping too — Prime Minister Narendra Modi’s administration has launched $2.7 billion in electronics manufacturing incentives, including subsidies for smartphone and semiconductor firms.
India, the world’s most populous nation, has become both a production base and an emerging consumer market. Though Apple’s market share in India is just 8%, its sales — mostly from iPhones -reached $8 billion in fiscal 2024.
Zoom in: Foxconn’s bold new bet on UP
- In parallel, Apple’s top supplier Foxconn is planning a major new manufacturing facility in north India, marking its first solo project in the region. As reported by the Economic Times, Foxconn is in talks with the Uttar Pradesh government to acquire 300 acres along the Yamuna Expressway near Greater Noida.
- “This facility has the potential to be slightly bigger than its upcoming facility in Bengaluru, which is set to become the company’s second largest globally,” a source told ET.
- The land is located near a proposed semiconductor OSAT facility that Foxconn and HCL are jointly developing — placing Foxconn’s new hub in close proximity to India’s semiconductor ambitions and new airport at Jewar.
- While discussions are still ongoing and the exact product focus is unconfirmed, the move signals Foxconn’s aggressive India expansion strategy, which already spans Tamil Nadu, Telangana, and Karnataka.
- “Foxconn’s expanded investment in India aligns with global supply chain realignments aimed at fostering resilience and promoting diversification,” said Prabhu Ram of CyberMedia Research to ET.
What they’re saying
- “The uncertainty over tariffs and geopolitical climate gives Foxconn a ‘capacity safety net’ for the potential future EMS opportunities that will eventually fall into India’s lap,” said Neil Shah, vice-president at Counterpoint Research.
- “It’s good to diversify geographically and, at the same time, being closer to some prospective customers will help tap them — from smart devices to auto,” Shah added.
- “Definitely, we want to move up the value chain as much as we can in India,” said Foxconn Chairman Young Liu, who visited India last year and outlined plans beyond smartphones, including electric vehicles, digital health, energy tech, and ICT.
- Foxconn is reportedly aiming to produce 25–30 million iPhones in India this year — more than double last year’s volume, according to the ET report.
Between the lines
Apple’s pivot has enabled:
- Price stability in the US market amid tariff tremors.
- Lower reliance on Chinese production amid rising political risk.
- Access to India’s skilled labor and favorable policy climate.
- Meanwhile, the US remains unlikely as a large-scale iPhone production site.
- “In the US, you could have a meeting of tooling engineers and I’m not sure we could fill the room. In China, you could fill multiple football fields,” Cook said in 2017, illustrating the limits of reshoring.
What’s next
- Apple’s diversification is far from over — but India now looks set to lead its next chapter.
- India is no longer a backup plan — it’s a strategic manufacturing cornerstone. The Noida-Chennai clusters are developing into modern industrial ecosystems, complete with infrastructure, talent pools, and supplier networks.
- With Foxconn deepening its roots in Uttar Pradesh, and Tata scaling its manufacturing capacity, Apple’s India production could soon match or exceed early-stage output once seen in China.
- India’s growing chip ambitions and export incentives make it an ideal partner for Apple’s long-term roadmap.
- As Cook continues to walk his long arc, Apple’s bet on India looks not just smart but inevitable.
