Apple ramps up India iPhone production as China dependence comes under pressure

Apple ramps up India iPhone production

Apple's Indian iPhone production, which began as a pilot on a limited basis, is now a key element of its global business model. What began in 2017 after a meeting between Prime Minister Narendra Modi and CEO Tim Cook has become a cluster of training facilities, dorms, and factories in Tamil Nadu and Karnataka. While China still produces about 80% of iPhones, Apple aims to double India's contribution from its current 14% within two years with the assistance of two new manufacturing hubs being constructed, reported the Wall Street Journal.

Trade tensions accelerate the transition

The decision to increase production in India gained prominence during Donald Trump's first term, when the Chinese-made iPhones were threatened with tariffs. That intensity increased in 2025, when the U.S. imposed a 20% tariff on China-made iPhones but excluded those manufactured in India. In the April–June quarter this year, Tim Cook indicated that the majority of iPhones sold in the U.S. were made in India—a metric that underscores India's growing place in Apple's supply chain.

Tamil Nadu at the centre of the boom

Foxconn's Sriperumbudur plant has around 40,000 workers—over 80% female—who work in three shifts of eight hours each. Thousands of employees reside in big dormitory complexes built with state government money, with more capacity planned. The Tamil Nadu government has supplemented incentives with infrastructure upgrading, manufacturing subsidies, and plans for a new airport to serve the factories. Upon completion of two new hubs, southern India is expected to give employment to 150,000 people in mere iPhone assembly alone.

Challenges in matching China's scale

India still has to match manufacturing high-precision components like cameras and chips, even after improvements in final assembly. China has a tight hold, with more than 150 of Apple's largest vendors located there compared with just 14 in India. Infra and logistics deficiencies and strict labour laws offer challenges. Early years saw labour unrest, such as mass protests against food and housing conditions. Apple's Indian operations also saw higher defect rates than China, though these have since nearly reached international levels.

Women at the centre of Apple's India workforce

Employment policies in Foxconn's Indian factories also prefer women, a departure from the norm in much of the country. Dormitories come with hostel-like regulations, recreational areas, and on-site shopping to reassure families and enhance retention. The strategy has attracted thousands of rural young women seeking stable work, driving the social and economic revitalization of host communities.

Long-term goals and international diversification

Apple is not limiting diversification to India only. Vietnam, Malaysia, and the U.S. are getting units to keep a check on reliance on one country. But India's vast reservoir of labour force, government incentives, and growing manufacturing skills place it high on the agenda for an expanded role. Experts are convinced Apple will be able to replicate significant pieces of its Chinese supply chain in India within five years and become a fixture in the company's global network of production.