Apple Shifts Production to India, Produces $22b Worth of iPhones

Apple Diversifies iPhone Production Away from China

Apple assembled US$22 billion worth of iPhones in India in the 12 months ended March, increasing production by nearly 60 per cent over the previous year in a sign of continued diversification away from China.

Production Numbers

The Cupertino, California-headquartered company now makes 20 per cent, or one in five, of its prized iPhones in the South Asian country, according to people familiar with the matter who asked not to be identified as the information isn’t public. The dollar figure represents the devices’ estimated factory gate value, rather than the marked-up retail price.

Supply Chain Shift

The ramp-up suggests the iPhone maker and its suppliers are accelerating a pivot to India from China, a process it began when harsh Covid lockdowns hurt production at Apple’s largest plant. The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Tata Group’s electronics manufacturing arm, which bought Wistron and controls Pegatron’s operations, is also a key supplier.

US Exports

Of the total India production, Apple exported 1.5 trillion rupees (S$23 billion) in iPhones from the region in the fiscal year through March 2025, the nation’s technology minister said last Tuesday (Apr 8).

Impact of Tariffs

Shipments of iPhones from India to the US accelerated after US President Donald Trump announced his plans for the so-called “reciprocal” tariffs in February, the people said. Apple’s average India production and exports surged all through the fiscal year to March.

Future Plans

Apple will increasingly prioritize iPhones from the India supply chain for its US customers, Bloomberg News reported previously. The Trump administration late Friday exempted electronics goods including smartphones and computers from its reciprocal tariffs. That’s good news for companies such as Apple and Nvidia, though the reprieve doesn’t appear to extend to Trump’s separate 20 per cent duty on China, applied to pressure Beijing to crack down on fentanyl.

Conclusion

Apple’s move to diversify its production away from China is a significant shift in the company’s global production strategy. With India emerging as a key manufacturing hub, Apple is likely to continue to invest in the country’s electronics industry, which could potentially lead to new job opportunities and economic growth.

FAQs

Q: Why is Apple diversifying its production away from China?
A: To reduce its reliance on a single country and mitigate the risks associated with tariffs and trade tensions.

Q: What is the current market share of Apple in India’s smartphone market?
A: Apple has a nearly 8 per cent market share in India’s smartphone market.

Q: What are the benefits of Apple manufacturing iPhones in India?
A: India offers state subsidies and financial incentives to encourage electronics manufacturing, which can help reduce production costs and increase competitiveness.

Q: When did Apple start producing iPhones in India?
A: Apple began producing iPhones in India in 2017.

Q: What is the estimated value of iPhones produced in India?
A: Apple assembled US$22 billion worth of iPhones in India in the 12 months ended March.