Apple is planning a major shift in its global production strategy. By next year, the company aims to assemble all iPhones sold in the United States in India.
While the full shift depends on expanding the supply chain and ongoing trade talks between the US and China, Apple’s contract manufacturers have already begun increasing their production capacity in India.
Why Is Apple Making This Move?
For some time, US President Donald Trump has been urging Apple to reduce its dependence on China due to ongoing trade tensions.
Although discussions on tariffs between the two countries are still happening, Apple is already taking steps to diversify its manufacturing base, with India emerging as a key part of the plan.
Record-Level iPhone Production in India
Apple’s production in India has reached new heights. According to Bloomberg News, the company manufactured iPhones worth $22 billion in India last year.
Now, about 20% of all iPhones assembled worldwide are made in India, showing a big change in Apple’s supply chain strategy.
The Foxconn factory in Bengaluru is expected to begin operations this month, with a potential annual capacity of 20 million units.
Contract manufacturers are already working to ramp up production to meet Apple’s future needs.
India Becomes a Major Export Hub
In just the first three months of 2025, over 3 million iPhones were shipped out of India—Apple’s highest-ever exports for a March quarter. This milestone shows India’s growing role in Apple’s global operations.
iPhone Sales in India on the Rise
Not only is Apple exporting more from India, but sales within the country are also booming.
According to IDC Research Manager Upasana Joshi, this growth is supported by offers like no-cost EMI, cashback, and discounts from online retailers.
Research firm Counterpoint predicts Apple will continue to grow at a rate of 10–15% annually in the Indian market throughout the year.
