NEW DELHI: In a major strategic shift, Apple CEO Tim Cook announced that the majority of iPhones sold in the United States during the June quarter of 2025 will be manufactured in India, marking a significant milestone in Apple’s supply chain diversification.
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Apple Shifts Manufacturing Focus from China to India
Apple’s move comes amid intensifying US-China trade tensions. The Trump administration had earlier imposed a 145% tariff on Chinese imports, although smartphones were later subjected to a 20% tariff. Despite partial tariff relief, Apple is rethinking its heavy reliance on China, which currently produces over 75% of the world’s iPhones.
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Tim Cook’s decision reflects Apple’s long-term goal to diversify its supply chain and reduce dependency on China, especially for products destined for the US market.
Record-Breaking iPhone Exports from India
India has rapidly emerged as a critical hub for Apple’s global operations:
- Rs 48,000 crore worth of iPhones were exported from India to the US during January–March 2025.
- This marks a significant jump from Rs 28,500 crore in the same period last year.
- India’s share in global iPhone production rose from 20% in 2023 to an estimated 25–30% in 2025.
Apple Boosts Local Manufacturing with New Plants
To further boost production in India, Apple and its partner companies are ramping up their manufacturing capacities:
- Tata Electronics has begun iPhone production at its new facility in Hosur, Tamil Nadu.
- Foxconn’s Rs 22,139-crore plant in Bengaluru, Karnataka, is expected to begin its first phase of production within days.
These moves are part of Apple’s strategy to establish India as a full-scale alternative to China for iPhone manufacturing.
India’s iPhone Manufacturing to Double by 2026
India’s role in Apple’s global operations is set to grow rapidly:
- iPhone manufacturing in India began in 2017.
- In FY 2024-25, 4.3 crore iPhones were made in India, worth Rs 1,87,000 crore.
- 80% of these units were exported, with India expected to manufacture 7–8 crore iPhones annually by 2026.
- 60 million iPhones are projected to be exported from India to the US alone in the coming years.
Apple’s App Store and Revenue in India on the Rise
India is not just a manufacturing hub but also a fast-growing market for Apple’s digital ecosystem:
- The iOS App Store in India generated Rs 44,447 crore in revenue in 2024.
- Apple earned a total of Rs 2.3 lakh crore across all verticals in India last year.
- With over 2.2 crore weekly App Store users and 110 crore app downloads in 2024, India remains a key market for Apple’s digital growth.
Conclusion: A Win-Win Strategy for Apple and India
Apple’s decision to manufacture more iPhones in India signals a strategic decoupling from China amid trade disputes, while offering a massive economic boost for India’s electronics sector. With new plants, rising exports, and a thriving app economy, Apple’s “Make in India” push is poised to reshape the global smartphone landscape.