Apple’s (AAPL) growing manufacturing footprint in India represents one of the most significant production shifts in the modern technology industry.
The move is not limited to opening factories or adding suppliers, but reflects a deeper transformation in how Apple approaches risk, resilience, and long-term global strategy.
Over the past five years, India has exported $50 billion worth of iPhones.
This marks a decisive break from Apple’s long-standing reliance on China as its primary manufacturing base.
Momentum has accelerated rapidly.
During the first half of the 2025–26 fiscal year alone, India exported $10 billion worth of iPhones.
At that pace, annual export volumes could double if current trends continue.
Rapid scaling of production capacity
Apple assembled iPhones worth $22 billion in India during the fiscal year ending March 2025.
This represented a nearly 60 percent increase compared with the previous year.
The figures highlight how quickly India has expanded its manufacturing capabilities.
Roughly $17.4 billion worth of iPhones were exported during the same period. This indicates that about 79 percent of India’s iPhone output meets Apple’s global export standards.
Apple plans to manufacture between 25 and 30 million iPhones in India during 2025.
That would more than double the previous year’s output. Such growth requires large-scale workforce training, supplier coordination, and quality assurance systems.
India’s rising share of global output
Industry estimates suggest India could account for 25 percent of global iPhone production by 2025.
Projections indicate this share could increase to between 26 and 30 percent by 2027. If realised, one in four iPhones worldwide could soon be produced in India.
Apple first began manufacturing iPhones in India in 2021. Since then, it has replicated key elements of its Chinese manufacturing model in a new operational environment.
Strategic drivers behind the shift
Apple’s decision is not driven purely by labour costs.
Geopolitical risk and supply chain resilience have become central considerations.
Higher tariffs and trade tensions involving China have accelerated diversification efforts.
Apple aims to manufacture most US-bound iPhones in India by the end of 2026. The United States accounts for more than 60 million iPhone sales annually.
Currently, around 80 percent of those devices are produced in China.
Manufacturing costs in India are estimated to be 5 to 8 percent higher. In some cases, costs could rise by as much as 10 percent.
Apple appears willing to absorb those costs as a trade-off for reduced geopolitical exposure.
Broader implications for India
Apple’s success reflects wider changes across India’s electronics manufacturing sector.
By FY 2024–25, smartphones had become India’s top export category. This represents a dramatic rise from 167th place a decade earlier.
Exports grew from $10.96 billion in FY 2022–23 to $24.14 billion in FY 2024–25.
Domestic value addition in mobile manufacturing has reached approximately 23 percent. The government plans to offer up to $5 billion in incentives to encourage local component production.
Long-term outlook
India’s Union Telecom Minister has said Apple plans to source all mobile phones from India in the future. However, developing a complete supply chain could take up to eight years.
Relocating even a small share of production from China remains complex. Despite these challenges, the shift improves supply chain resilience and regional market access.
Apple’s India expansion may ultimately reshape how global Tech companies approach manufacturing.