Apple is accelerating its manufacturing shift to India, aiming to produce 25% of its global iPhones by 2025, driven by geopolitical tensions and cost advantages. With exports surging 57% in 2025, India is outpacing China. However, challenges like supply chain complexities and U.S. tariff threats loom. Key players like Foxconn and Tata are expanding operations, boosting India’s economy.
Apple’s Ambitious Plan to Manufacture 25% of iPhones in India by 2025
Apple is significantly ramping up its iPhone production in India, targeting 25% of its global output by 2025, a sharp rise from 18% in 2024. This strategic pivot, driven by U.S.-China trade tensions and India’s favorable manufacturing ecosystem, has seen iPhone exports from India soar by 57% year-on-year to 20.4 million units between January and May 2025, with 77% destined for the U.S., according to Omdia data. In April alone, India shipped 3.3 million iPhones to the U.S., surpassing China’s 900,000 units, marking a historic shift in Apple’s supply chain.
The company’s key manufacturing partners, Foxconn and Tata Electronics, are leading this charge. Foxconn, Apple’s largest contract manufacturer, has invested $2.5 billion in a 300-acre campus in Devanahalli, Karnataka, expected to produce 25-30 million iPhones annually by the end of 2025. Tata Electronics, emerging as a formidable player, holds a 35% share in India’s iPhone production, bolstered by its acquisition of Wistron’s Karnataka facility and a 60% stake in Pegatron’s Tamil Nadu plant.
India’s rise as a manufacturing hub is fueled by government incentives like the Production Linked Incentive (PLI) scheme, lower labor costs, and a skilled English-speaking workforce. A Global Trade Research Initiative report highlights that even with a potential 25% U.S. tariff, Indian-made iPhones remain cost-competitive compared to U.S. production, which could inflate iPhone prices to $3,500 due to supply chain and labor costs.
However, challenges persist. The recent decision by Foxconn to repatriate hundreds of Chinese engineers from its Indian facilities could disrupt Apple’s plans, as China’s expertise in precision manufacturing remains critical. Additionally, U.S. President Donald Trump’s push for domestic manufacturing, with threats of a 25% tariff on non-U.S.-made iPhones, adds uncertainty. Trump’s May 2025 statement to Apple CEO Tim Cook emphasized U.S. production, but analysts argue India’s ecosystem makes it a more viable option.
In fiscal year 2024-25, Apple’s India production hit $22 billion, a 60% increase from the previous year, with exports reaching $17.4 billion. This growth has created thousands of jobs, with Foxconn’s Tamil Nadu facility alone adding 10,000 positions in May 2025. India’s smartphone exports crossed $21 billion in the first 11 months of 2024-25, driven largely by Apple, positioning the country to capture 20% of global smartphone manufacturing by 2025, per Counterpoint Research.
Despite global smartphone output projected to dip 1% in 2025 due to tariffs and industry slowdown, India’s manufacturing sector is bucking the trend. Apple’s focus on India not only diversifies its supply chain but also strengthens India’s position as a global tech manufacturing hub, with companies like Samsung also contributing to this growth.
Disclaimer: This article is based on recent news reports, industry data, and market research from sources like Omdia, Counterpoint Research, and The Economic Times. Information is accurate as of July 7, 2025, and subject to change based on new developments.