Resulting from Apple’s efforts to avoid tariffs in China, the US giant has increased iPhone production in India by about 53 per cent last year and now makes a quarter of its marquee devices there. The company has reportedly assembled about 55 million iPhones in India in 2025, up from 36 million a year earlier. Apple makes about 220 million to 230 million iPhones a year globally, with India’s share of the total increasing rapidly.
Apple has accelerated its expansion in the country in recent years, bolstered by Indian Prime Minister Narendra Modi’s production-linked incentives aimed at turning India into the world’s factory. The subsidies have helped offset some of the structural cost disadvantages that manufacturers face in India, including the lack of a China-like robust supply chain and logistics challenges.
Last year, shipments from China, where Apple still makes the bulk of iPhones, faced headwinds as a result of US tariffs related to the two economic powers’ trade war. The levies pushed Apple and its suppliers to move a greater share of devices meant for the American market to alternative manufacturing destinations, with India emerging as a major brightspot.
However, even though the gap has narrowed, electronics assembly and component manufacturing still costs more in India than in countries including China and Vietnam. That’s prompted Apple, Samsung Electronics Co and others to seek more government support.
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