Apple (AAPL) reportedly boosted iPhone production in India by about 53% in 2025, assembling roughly 55M devices, up from 36M a year earlier, as the company continues shifting manufacturing away from China to reduce tariff exposure.
India now accounts for about a quarter of Apple’s iPhone output, Bloomberg News reported, citing people familiar with the matter. Apple has accelerated its expansion in India in recent years, supported by production-linked incentives introduced by PM Narendra Modi to boost local manufacturing.
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.
In 2025, shipments from China, where Apple still produces most of its iPhones, faced pressure from U.S. tariffs tied to the ongoing trade tensions between the two countries. This has also pushed Apple and suppliers to move more devices destined for the American market to alternative locations, with India emerging as a key manufacturing hub.
Despite the shift, assembling electronics in India still costs more than in countries such as China and Vietnam, prompting companies including Apple (AAPL), Samsung Electronics (SSNLF), and others to seek additional government support. India’s current smartphone production incentives are set to expire on March 31, and companies are in talks with New Delhi about extending subsidies to remain competitive.
Apple (AAPL) currently assembles the iPhone 17 series in India, including Pro and Pro Max models, while suppliers such as Foxconn Technology Group, Tata Electronics, and Pegatron also produce earlier models like the iPhone 16 and iPhone 15 for domestic sales and exports.
The ramp-up underscores Apple’s strategy to build India as a second major iPhone manufacturing base, while expanding local suppliers producing components such as lithium-ion cells, device enclosures, and accessories, including AirPods.