Apple intends to produce more than one-quarter of all its global iPhone models inside India before the end of 2026. This move was made due to the ongoing trade conflicts between the U.S. and China, which necessitated a strategic relocation of the company's production facilities. FY25 marked a 20% global production share for iPhones in India that exceeded the 14% level of FY24. Four years ago, India did not produce iPhones in the market. The latest industry filings indicate that Apple's Indian contract manufacturers completed production of approximately 40 million iPhones, valued at $22 billion, during the previous fiscal period.
The change occurs at a time when the US imposes a 20% tariff on Chinese electronic imports. The American suspension of reciprocal tariffs occurred in April 2025, yet continues to affect all smartphone, tablet, laptop, and smartwatch exports.
Electronics sent to the United States from India are exempt from import duties, thereby providing India with this advantage. The domestic production of iPhones in India offers customers in the Indian market an advantage by providing them with phones at 20 per cent less than Chinese-made iPhone models. The price reductions generated by Apple's trade relationship with India enhance the company's market position in North America and Europe, as well as its key customer base.
Apple's Indian facilities manufactured 32 million iPhones during FY25, which were primarily sent to the US, European, and West Asian markets. These exports generated a total production value of $17.5 billion. The US market receives its iPhone exports through Chicago, while North American shipments arrive at Amsterdam, and Dubai trains the West Asian market.
Apple's Indian operations utilise three key production partners: Foxconn and Pegatron in Tamil Nadu, and Tata Electronics in Karnataka. These facilities are essential locations that have contributed to Apple's growing reputation in local markets.
Apple initiated manufacturing increases in India when the Production-Linked Incentive (PLI) scheme was launched in 2020. The Indian production volume of iPhones by Apple reached $2 billion in FY22, marking sixty per cent of these units for export. The manufacturing output of Apple increased to $7 billion during FY23, with 71% of the total production being exported.
Apple's production reached $14 billion, while exports totalled $10.3 billion during FY24. Compared to the previous year, production levels increased by 57% during FY25, followed by a 70% exponential expansion in exports. Apple's prolonged expansion throughout India indicates the company is making India its primary source for ensuring cost-effective operations and stable international supply chains.