In a bold strategic move, Apple is aiming to build most of the iPhones it sells in the United States directly from India by the end of 2026. This marks a significant step in Apple’s long-term efforts to diversify its manufacturing base beyond China, driven by geopolitical tensions, tariff risks, and supply chain disruptions witnessed during the pandemic.

Key Highlights

Apple assembled over 40 million iPhones in India in the fiscal year ending March 2025.

Plans are underway to nearly double production to over 80 million units.

India-made iPhones will cater primarily to the US market.

China remains Apple’s largest manufacturing base, but India’s share is rapidly growing.

Foxconn and Tata Group are expanding operations to meet increasing demand.

Apple’s Accelerated Shift from China

Apple’s pivot from China has been in progress for several years but accelerated significantly during the COVID-19 pandemic. Stringent lockdowns disrupted production at major facilities, prompting the tech giant to seek alternative hubs to ensure stability. Additionally, the growing tension between Beijing and Washington, coupled with tariffs imposed by the Trump administration, has intensified Apple’s need to diversify its supply chain.

Current Production Scale in India

As of March 2025, Apple has successfully assembled iPhones worth approximately $22 billion (around ₹1,87,886 crore) in India, achieving a staggering 60% increase in production compared to the previous fiscal year. Presently, India accounts for 20% of Apple’s total iPhone output, meaning one in every five iPhones is now made in the South Asian country.

Foxconn Technology Group’s factory in southern India remains the cornerstone of Apple’s manufacturing efforts, while Tata Group has rapidly emerged as a vital partner by acquiring Wistron Corp.’s local business and operating Pegatron Corp.’s India operations.

Export Growth and Tariff Relief

India has become not only a production center but also a significant export hub for Apple. In the fiscal year through March 2025, Apple exported iPhones worth 1.5 trillion rupees (approximately $17.5 billion) from India. Shipments to the United States gained momentum particularly after former President Donald Trump introduced “reciprocal” tariffs earlier this year.

Fortunately for Apple, smartphones and computers were later exempted from these tariffs, sparing India-made iPhones from additional duties. However, tariffs on Chinese imports remain steep at a cumulative rate of 145%, which further pressures companies like Apple to strengthen their manufacturing footprint outside China.

Expansion Efforts by Apple’s Partners

Both Foxconn and Tata Group are aggressively expanding their operations in southern India. New facilities are under construction, and additional production lines are being set up to accommodate the sharp rise in demand. These expansions align with India’s larger vision of becoming a global manufacturing powerhouse under Prime Minister Narendra Modi’s “Make in India” initiative, which offers state subsidies and incentives for electronics manufacturing.

Assembly of Premium Models in India

A notable milestone in Apple’s India journey is the assembly of its entire iPhone lineup within the country, including the premium titanium-clad iPhone Pro models. This shows India’s growing capability to handle not just mass-market devices but also sophisticated, high-end electronics manufacturing.

Conclusion

Apple’s ambition to produce the majority of its US-sold iPhones in India by the end of 2026 highlights a decisive shift in global manufacturing dynamics. While China remains critical to Apple’s operations, India’s role is rapidly expanding, supported by strong government incentives, growing manufacturing expertise, and favorable trade policies. As geopolitical uncertainties persist, Apple’s India strategy looks set to be a cornerstone of its future global supply chain resilience.