Apple Inc. is pushing forward with plans to import the majority of iPhones sold in the United States from India by the end of next year, according to sources familiar with the matter. This move would nearly double the company’s annual iPhone production in India to more than 80 million units, compared to the 40 million units assembled during the fiscal year ending March 2025. Apple sells over 60 million iPhones annually in the U.S.
The initiative marks a significant step in Apple’s broader strategy to diversify its supply chain beyond China. Challenges such as trade tariffs initiated during the Trump administration, and ongoing geopolitical tensions between Beijing and Washington, have accelerated Apple’s efforts to reduce its reliance on Chinese manufacturing. Production disruptions caused by COVID-19 lockdowns in China further emphasized the need for alternative production bases.
In the fiscal year ending March, Apple assembled $22 billion worth of iPhones in India, representing a nearly 60% increase from the previous year. Today, approximately 20% of all iPhones are manufactured in India, though China remains Apple’s primary production hub.
Key partners like Foxconn Technology Group and Tata Group have been instrumental in boosting Apple’s output in India. Foxconn operates a major facility in southern India, while Tata Group, which took over Wistron Corp.’s local operations and now runs Pegatron Corp.’s India business, is expanding its manufacturing footprint. Both companies are building new plants and ramping up production capacities.
India’s growing role in Apple’s global supply chain is also reflected in exports. According to the country’s technology minister, India exported iPhones worth 1.5 trillion rupees ($17.5 billion) in the fiscal year through March 2025.
Shipments from India gained momentum following former President Trump’s announcement of “reciprocal” tariffs earlier this year. However, the recent exemption of electronics—including smartphones and computers—from these tariffs has been a relief for companies like Apple. Nevertheless, other tariffs on Chinese imports remain in place, further encouraging companies to seek production alternatives outside China.
Currently, Apple manufactures its full range of iPhones in India, including the premium titanium Pro models. Government incentives under Prime Minister Narendra Modi’s initiative to position India as a global manufacturing hub have played a key role in Apple’s successful expansion in the country.
As geopolitical tensions persist and global supply chains continue to shift, Apple’s growing presence in India marks a pivotal change in its manufacturing strategy.
