Apple Inc. is gearing up for a major transformation in its global manufacturing strategy. The company aims to source most of the iPhones sold in the United States from India by the end of 2026. This bold move underscores Apple’s efforts to diversify its supply chain and reduce dependency on China amid ongoing trade tensions and tariff policies.
The plan calls for Apple to nearly double its current iPhone production in India, according to sources familiar with the matter. With over 60 million iPhones sold in the U.S. annually, this marks a significant shift in Apple’s supply chain operations. The company’s strategic focus on iPhone production in India is part of a broader effort to navigate geopolitical complexities while ensuring consistent supply for its largest market.
Why Apple is Betting Big on India?
Apple’s transition toward India began during the height of the COVID-19 pandemic, when severe lockdowns in China disrupted manufacturing at key plants. This exposed the vulnerabilities of relying heavily on a single country for production. The situation was further compounded by U.S.-China trade tensions and tariff hikes introduced during the Trump administration.
India, with its expanding infrastructure, favourable government incentives, and growing skilled workforce, has emerged as a natural alternative. Apple produced $22 billion worth of iPhones in India in the 12 months ending March 2025, marking a 60% year-over-year increase. This accounts for about 20% of the company’s total iPhone output worldwide.
One of the key drivers behind the surge in iPhone manufacturing in India is the support from Prime Minister Narendra Modi’s “Make in India” initiative. The Indian government is offering state-backed subsidies to encourage electronics manufacturing, which has helped Apple and its suppliers expand their footprint in the country.
Foxconn and Tata Group Lead the Manufacturing Push
Apple’s India production network is anchored by major global suppliers. Foxconn Technology Group operates a large factory in southern India and handles the bulk of Apple’s local iPhone assembly. Meanwhile, Tata Group has become a major player in Apple’s India ambitions. It acquired Wistron Corp.’s local operations and also runs Pegatron Corp.’s facilities.
Together, these suppliers have scaled up operations to meet Apple’s rising production demands. As of March 2025, Apple had exported ₹1.5 trillion ($17.5 billion) worth of iPhones from India. A significant share of these exports is headed to the U.S., especially after Trump introduced a plan for “reciprocal” tariffs earlier this year.
However, the recent tariff exemptions for smartphones and computers have worked in Apple’s favor. The exception allows iPhones made in India to enter the U.S. market duty-free, making the country an even more attractive manufacturing base. In contrast, Chinese-made products are still subject to a 20% duty aimed at curbing illegal fentanyl exports, and other cumulative tariffs on Chinese goods remain as high as 145%.
India Now Produces the Full Range of iPhones
India is no longer just an assembly site for older or budget models. Apple now manufactures its entire iPhone lineup in the country, including high-end devices such as the iPhone 15 Pro and iPhone 15 Pro Max, which feature titanium frames and advanced processors.
This shows how far India has come in terms of manufacturing capabilities, with Apple leveraging the country not just for volume but for quality and innovation as well. The success of iPhone production in India also sets a precedent for other tech companies looking to diversify their supply chains in a more stable geopolitical environment.
As Apple continues to scale its operations, India is poised to play an even more central role in its global strategy. With increasing production capacity, reliable suppliers, and strong government backing, the future of Apple’s iPhone supply chain is increasingly being built in India.
Also Read: Apple iPhone Models May Include Better Hardware in The Future
Follow 10X Times to stay updated with business news.
