iPhone Output Surges 53% - Apple now makes about 25% of iPhones in India

• Apple increased India iPhone output 53% to 55 million units in 2025.

• India now produces about 25% of Apple’s 220–230 million annual iPhones.

• Shift supports supply chain diversification beyond China amid U.S. tariffs.

• Government incentives fuel expansion despite higher manufacturing costs.

• India assembles latest iPhone 17 lineup and older models.

• Market revenue tops $9 billion, with retail and Apple Pay expansion planned.

Apple has sharply expanded its manufacturing footprint in India, boosting iPhone production in the country by roughly 53% over the past year. The surge underscores the company’s ongoing effort to diversify its supply chain and reduce exposure to trade tensions between the United States and China.

According to individuals familiar with the matter, Apple assembled approximately 55 million iPhones in India in 2025, a significant jump from 36 million units the year before. While Apple’s total annual global iPhone output ranges between 220 million and 230 million devices, India’s contribution has climbed swiftly and now accounts for about a quarter of overall production.

The expansion reflects Apple’s broader push to establish India as a major manufacturing base. In recent years, the company has accelerated investments in the country, aided by Prime Minister Narendra Modi’s production-linked incentive (PLI) program. The initiative is designed to position India as a global manufacturing powerhouse and has helped offset structural disadvantages such as less developed supply chains and logistical bottlenecks compared with China.

Trade dynamics have further reinforced Apple’s pivot. In 2025, shipments from China—still the primary production hub for iPhones—faced challenges stemming from U.S. tariffs tied to ongoing trade disputes. As a result, Apple and its suppliers have shifted a larger share of devices intended for the American market to alternative locations, with India emerging as a key beneficiary of that transition.

Despite rapid growth, manufacturing in India remains comparatively more expensive than in established electronics hubs like China and Vietnam. Higher costs for assembly and components have led Apple, Samsung Electronics Co., and other manufacturers to engage in discussions with Indian authorities about additional government support.

Current smartphone production subsidies are set to expire on March 31, creating urgency for policymakers. With recent U.S. legal decisions altering some of the tariffs affecting Chinese goods, India faces increasing pressure to enhance its competitiveness in order to retain and expand export-driven manufacturing.

Apple’s Indian operations now handle assembly for the full lineup of its latest iPhone 17 series, including premium Pro and Pro Max variants. Key partners such as Foxconn Technology Group, Tata Electronics, and Pegatron Corp. are also producing earlier-generation models, including the iPhone 15 and iPhone 16, serving both domestic buyers and overseas markets.

The ramp-up in output highlights Apple’s long-term strategy to cultivate India as a second core production center capable of supporting global demand. The company is broadening its supplier network in the country to include components such as lithium-ion batteries, device enclosures for iPhones and Apple Watches, and accessories like AirPods.

Beyond manufacturing, Apple is increasingly focused on capturing consumer demand in India. Revenue in the country has surpassed $9 billion, reflecting strong growth. The company plans to introduce Apple Pay to the Indian market later this year and has expanded its retail footprint to six physical stores, signaling that India is becoming not only a crucial production base but also a rapidly expanding market for its products.

As geopolitical pressures reshape global supply chains, Apple’s growing commitment to India illustrates how the tech giant is recalibrating its operations—balancing cost considerations, government incentives, and market opportunities to secure its next phase of growth.