Apple assembles $22 billion worth of iPhones in India, doubles down on local manufacturing

Local content in Apple’s India-made iPhones has also seen a significant rise.

Apple has ramped up its iPhone production in India to an all-time high, assembling devices worth $22 billion over the past year, Bloomberg reported, in what marks a significant shift in the company’s global supply chain strategy. The move reflects Apple’s accelerated efforts to reduce its reliance on China and deepen its manufacturing footprint in India.

According to the report, iPhone production in India jumped by around 60% over the previous year, with the country now accounting for nearly 20% of the total iPhones assembled globally. This push comes on the back of India's Production-Linked Incentive (PLI) scheme, which has played a key role in attracting major global electronics manufacturers.

Earlier this week, India’s IT and Electronics Minister Ashwini Vaishnaw revealed that Apple exported iPhones worth ₹1.5 trillion (approximately $17.4 billion) from India during the fiscal year ending March 2025. Apple currently operates three iPhone assembly plants in India — two in Tamil Nadu and one in Karnataka. While Taiwanese giant Foxconn runs one of the Tamil Nadu plants, the other two are operated by the Tata Group.

Bloomberg also noted that Apple has been actively encouraging its suppliers from China, Japan, and Taiwan to establish manufacturing operations in India. Key component manufacturers such as Sunwoda (battery packs), Foxlink (cables), and Aequs (enclosures) have already begun production in the country.

Local content in Apple’s India-made iPhones has also seen a significant rise. When Apple began manufacturing in India in 2020, local sourcing accounted for just 5–8% of parts in various models. That figure has now grown to roughly 20%, Bloomberg reported.

In a sign of growing confidence in its Indian operations, Apple has reportedly expanded beyond the standard iPhone models. While the company initially focused on assembling the base iPhone 15 variant in India, it has now started assembling the more premium iPhone 16 Pro models as well, Bloomberg added.

The surge in iPhone shipments from India also appears to be strategically timed with recent U.S. trade developments. Bloomberg reported that Apple's exports from India to the U.S. have risen sharply following the Trump administration’s move to impose steep reciprocal tariffs on Chinese goods. Apple is expected to prioritise its India supply chain for U.S.-bound iPhone shipments to navigate the new tariff landscape.

On Saturday, the Trump administration announced a temporary exemption for smartphones, computers, and other key electronics from the reciprocal tariffs. This means iPhones made in India will not face additional levies for now, and iPhones from China will also see a reduced tariff rate of 20%, significantly lower than the full 145% that would otherwise apply.