Apple’s India Push Grows Stronger with $22 Billion iPhone Production in a Year

Apple Ramps Up India Production, Manufactures $22 Billion Worth of iPhones in a Year

This unprecedented growth underscores Apple’s accelerating shift away from its long-standing dependence on China, and signals India’s rising stature as a global electronics manufacturing hub.

According to sources familiar with the matter, Apple’s contract manufacturing partners — Foxconn, Pegatron, and Wistron (now owned by Tata Group) — have played a pivotal role in reaching this milestone. Collectively, these firms have scaled up operations in India across several states, including Tamil Nadu, Karnataka, and Andhra Pradesh, employing thousands of workers and operating large-scale facilities dedicated to iPhone assembly.

A Strategic Pivot: Reducing Dependence on China

This production surge is part of Apple’s broader strategy to diversify its global supply chain, especially in light of rising geopolitical tensions, trade uncertainties, and operational risks associated with its heavy reliance on China. Over the past few years, Apple has been gradually increasing its investment in India as a means of hedging against these vulnerabilities.

Analysts suggest that the $22 billion output marks a threefold increase in value compared to just two years ago, highlighting both Apple’s commitment and the rapid maturation of India’s electronics ecosystem.

The Driving Forces Behind Apple’s Strategic Pivot

1. Geopolitical Tensions and Trade Uncertainty

The ongoing U.S.-China tensions have been a major catalyst. Beginning with the U.S.-China trade war under the Trump administration, escalating tariff battles, sanctions on Chinese tech firms, and restrictions on U.S. companies have created a volatile environment for global businesses operating in China.

In particular, concerns about China’s position on Taiwan and the broader issue of technological sovereignty have heightened the risks of concentrating operations in one country. With Washington increasingly scrutinizing American tech companies’ ties to China, Apple has little choice but to hedge against future regulatory and political shocks.

2. COVID-19 and Supply Chain Vulnerability

The COVID-19 pandemic exposed critical vulnerabilities in global supply chains. Apple was hit hard in late 2022 when Zhengzhou’s Foxconn facility—the largest iPhone assembly plant—experienced major disruptions due to China’s strict zero-COVID policy. The factory, often referred to as “iPhone City,” faced production halts, labor unrest, and shipment delays, highlighting the dangers of relying too heavily on a single geographic hub.

3. Rising Labor Costs and Economic Shifts

China is no longer the low-cost manufacturing haven it once was. As the country has developed economically, wages have increased, and labor shortages have emerged in certain regions. Apple, seeking to maintain high margins and reduce operational costs, is now turning to countries with more competitive labor markets.

4. Push for Resilience and Flexibility

Global companies are increasingly prioritizing resilient, multi-node supply chains over efficiency-at-all-costs models. Apple’s move aligns with a broader industry trend toward supply chain decentralization, which allows companies to better adapt to local disruptions, labor issues, or shifts in demand.

Export-Led Growth

Remarkably, nearly 70% of the iPhones produced in India during this period were exported, mostly to Europe and the Middle East. This positions India not merely as a domestic assembly location, but as a key global export base in Apple’s international production network. The remaining 30% were sold within India, a market that, while traditionally price-sensitive, has shown growing appetite for premium smartphones in recent years.

With Apple devices increasingly being “Made in India,” the brand is also benefiting from reduced import duties, allowing it to price some models more competitively in the local market.

PLI Scheme Fuels Momentum

India’s government has played a major role in catalyzing this shift. Under the Production-Linked Incentive (PLI) scheme, Apple’s manufacturing partners receive financial incentives tied to output levels, exports, and local sourcing. The scheme has proven successful in drawing global tech giants to invest in Indian operations, with Apple being one of its most high-profile beneficiaries.

The Indian government, for its part, views this progress as validation of its “Make in India” initiative, aimed at transforming the country into a global manufacturing powerhouse.

Retail Expansion Complements Manufacturing Growth

Apple’s manufacturing boom in India is being complemented by its growing retail presence. In 2023, the company opened its first two Apple-branded retail stores in Mumbai and Delhi. These flagship locations are more than symbolic — they represent Apple’s long-term commitment to one of the world’s fastest-growing smartphone markets.

Although Apple’s market share in India remains modest compared to budget and mid-range Android brands, it dominates the premium segment (above ₹50,000) and is seeing strong double-digit growth year-over-year.

India: Apple’s Second Manufacturing Home?

What once began as a cautious foray into assembling lower-end iPhones for the Indian market has evolved into a full-fledged manufacturing operation with global relevance. Experts now say India is no longer just an alternative to China — it’s becoming a parallel production hub with increasing autonomy and strategic importance.

“Apple’s scale in India today would have been unthinkable five years ago,” said an industry veteran close to the supply chain. “With $22 billion in production, this is no longer just a backup plan — this is a core pillar of Apple’s global operations.”

India has steadily gained prominence in Apple’s global production strategy. With support from government incentives under the “Make in India” initiative and growing investments from Apple’s key suppliers like Foxconn, Pegatron, and Wistron, the South Asian nation has become a critical player in assembling iPhones and potentially other Apple devices. In fact, a significant percentage of iPhones are now being produced in India, and that share is expected to grow in the coming years.

This shift not only helps Apple mitigate risk but also allows it to tap into one of the fastest-growing smartphone markets in the world. India’s skilled labor force, expanding infrastructure, and favorable policies have positioned it as an ideal alternative to China, earning it the informal title of Apple’s “second manufacturing home.”

Looking forward, Apple’s investment in India is likely to deepen further, with more facilities, local partnerships, and perhaps even the manufacturing of higher-end devices. This evolution marks a significant turning point in Apple’s global operations, signaling a more distributed and balanced approach to production in the post-pandemic world.