Apple has rapidly increased iPhone manufacturing in India. In the 12 months ending March 2025, the company assembled iPhones worth $22 billion. This marks a 60% jump from the previous year. Clearly, Apple is shifting part of its supply chain away from China.

India Now Makes 1 in 5 iPhones

India now produces 20% of all iPhones globally. This major milestone shows Apple’s growing trust in Indian manufacturing. The $22 billion figure reflects the factory gate value, not retail price.

Foxconn handles most of this production at its large plant in southern India. Meanwhile, Tata Group has taken over Wistron and Pegatron’s local operations. As a result, Tata plays a crucial role in Apple’s Indian supply chain.

US Tariffs Push Exports Higher

India’s tech minister recently confirmed that Apple exported iPhones worth ₹1.5 trillion ($17.4 billion) last year. Shipments to the US increased quickly after President Donald Trump announced new tariffs in February. Apple reacted by speeding up exports from India.

Although smartphones escaped the latest tariff list, China still faces a 145% duty on many goods. In addition, Trump’s separate 20% tariff on Chinese imports—meant to pressure Beijing over fentanyl—still applies.

Therefore, Apple sees India as a safer and cheaper export base.

Apple Relies on India to Avoid US Duties

iPhones made in India do not face any US import duties. Because of this, Apple now relies more on Indian factories to serve American customers. Analysts believe this trend will continue in the coming years.

Apple Still Tied to China

Despite India’s progress, Apple remains deeply tied to China. The company works with nearly 200 Chinese suppliers. Over decades, China has built a powerful and efficient production ecosystem. Even CEO Tim Cook admits China holds a major advantage.

Though Trump has urged Apple to make iPhones in the US, that shift seems unlikely. The US lacks both the skilled labor and large-scale facilities needed for iPhone production.

In fact, a 2022 study said moving just 10% of Apple’s production from China would take eight years. This proves how firmly Apple’s roots are set in China.

India Expands Its Role in Apple’s Future

Still, India continues to deliver strong results. Apple now makes all its iPhone models in India, including the premium titanium Pro versions. Government incentives helped make this possible.

The Modi government’s Production-Linked Incentive (PLI) scheme played a big role. On top of that, India recently announced $2.7 billion in new subsidies for electronics and chipmaking.

In the last fiscal year, Apple earned nearly $8 billion in India—mostly from iPhone sales. Although the company holds just 8% of India’s smartphone market, it clearly sees big potential. Now, Apple is betting on India not only as a sales market but as a key part of its global manufacturing future.