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Apple plans to make 25 million iPhones in India this year, with 10 million for local use. However, if all are redirected to the U.S., these units could meet around half of U.S. demand, according to Bank of America.
Apple is significantly ramping up its iPhone production in India, aiming to meet a large portion of U.S. market demand with Made-in-India iPhones. This move comes as Apple works to diversify its supply chain and reduce dependency on China amid growing geopolitical tensions and mounting tariff pressures.
According to a Bank of America estimate, Apple plans to manufacture 25 million iPhones in India in 2025, with nearly 10 million units reserved for domestic consumption. However, if redirected entirely to the U.S., these devices could cover approximately half of the U.S. demand for iPhones, marking a dramatic shift in global production dynamics.
This production shift is largely driven by changes in U.S. trade policy, including steep tariffs on Chinese imports. Under President Trump’s revised trade strategy, iPhones imported from China now face a 54% duty, compared to a relatively lower 26% on Indian products. This tariff difference could translate into hundreds of dollars in savings per device for Apple, offering both economic and strategic incentives to boost manufacturing in India.
The India iPhone manufacturing initiative also supports Apple’s broader expansion in the country, which includes the growth of local production facilities through partnerships with suppliers like Foxconn, Pegatron, and Wistron. With increasing U.S. demand for iPhones, India is steadily becoming an indispensable player in Apple’s global production and supply strategy.
This bold move underlines Apple’s long-term vision of establishing India as an iPhone hub, both for local and international markets. It not only mitigates geopolitical and tariff risks but also strengthens Apple’s position in one of the world’s fastest-growing economies. As the U.S. and India deepen trade ties, Apple’s shift may set a precedent for other tech giants to follow suit.
In the near future, if trends continue, the iPhone production shift could redefine the global electronics manufacturing map—with India poised to become a dominant force in high-end smartphone exports, starting with the iconic iPhone.
According to a Bank of America estimate, Apple plans to manufacture 25 million iPhones in India in 2025, with nearly 10 million units reserved for domestic consumption. However, if redirected entirely to the U.S., these devices could cover approximately half of the U.S. demand for iPhones, marking a dramatic shift in global production dynamics.
This production shift is largely driven by changes in U.S. trade policy, including steep tariffs on Chinese imports. Under President Trump’s revised trade strategy, iPhones imported from China now face a 54% duty, compared to a relatively lower 26% on Indian products. This tariff difference could translate into hundreds of dollars in savings per device for Apple, offering both economic and strategic incentives to boost manufacturing in India.
The India iPhone manufacturing initiative also supports Apple’s broader expansion in the country, which includes the growth of local production facilities through partnerships with suppliers like Foxconn, Pegatron, and Wistron. With increasing U.S. demand for iPhones, India is steadily becoming an indispensable player in Apple’s global production and supply strategy.
This bold move underlines Apple’s long-term vision of establishing India as an iPhone hub, both for local and international markets. It not only mitigates geopolitical and tariff risks but also strengthens Apple’s position in one of the world’s fastest-growing economies. As the U.S. and India deepen trade ties, Apple’s shift may set a precedent for other tech giants to follow suit.
In the near future, if trends continue, the iPhone production shift could redefine the global electronics manufacturing map—with India poised to become a dominant force in high-end smartphone exports, starting with the iconic iPhone.
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