iPhone being manufactured in a modern Indian factory, symbolizing Apple’s shift from China to India for U.S. exports, with Indian and U.S. flags representing global supply chain change
Published on: August 4, 2025 at 21:03
In a game-changing update for the global tech industry, Apple CEO Tim Cook announced that more than 50% of iPhones sold in the U.S. are now manufactured in India. This shift is part of Apple’s larger strategy to diversify its supply chain away from China amid rising tariffs and geopolitical uncertainty. This isn’t just a supply chain adjustment—it’s a powerful indicator of India’s emergence as a global tech manufacturing powerhouse.
“We’re incredibly proud of what we’re building in India,” Tim Cook said in Apple’s recent earnings call.
Why Apple Is Moving iPhone Production to India
Apple’s supply chain has long been anchored in China. But rising U.S.–China tensions, strict COVID policies, and tariff threats have forced the company to rethink that dependency.
Here’s why India makes sense:
Cost Efficiency & Incentives
India’s Production Linked Incentive (PLI) scheme offers major tax breaks for large-scale electronics manufacturing. This makes producing iPhones in India not only efficient but also financially attractive.
Avoiding Tariffs
The U.S. has imposed up to 145% tariffs on Chinese-made electronics. iPhones made in India are subject to significantly lower import duties, making them cheaper to sell in the U.S. without impacting Apple’s profit margins.
Also Read: India Becomes World’s 3rd‑Largest Mobile Phone Exporter Replacing Vietnam— 1.7 Million Jobs Created
India’s Growing Role in Apple’s Global Operations
According to data from Counterpoint Research and Canalys, Apple exported $22 billion worth of iPhones from India in FY25—a staggering 60% increase year-over-year. About 70–80% of those exports went to the U.S. alone.
🏭 Where Are India’s iPhones Made?
Key Apple suppliers now operating in India include:
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Foxconn (Tamil Nadu, Karnataka)
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Wistron (Now part of Tata Electronics)
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Pegatron (Tamil Nadu)
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Tata Electronics (New strategic partner in iPhone assembly)
Apple is also actively expanding its retail presence and developer ecosystem in India, further solidifying its long-term vision in the country.
How This Impacts China—and Why It Matters Globally
While China remains a major player, its share in iPhone production is gradually shrinking. Apple aims to produce up to 35% of all iPhones in India by 2027. This diversification means:
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Less risk from geopolitical instability
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Faster global distribution
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Cost stability for U.S. consumers
This also signals a major shift in global tech manufacturing, with India now seen as a legitimate alternative to China.
For iPhone users in the U.S., the shift could mean:
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Fewer supply shortages
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More consistent pricing
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Potential product upgrades without cost inflation
Plus, by relying less on China, Apple is positioning itself to avoid the brunt of future tariffs—keeping flagship iPhones more affordable in a challenging global economy.
This article is based on publicly available data, news reports, and industry analyses at the time of writing.
All statistics, company names, and references mentioned are for informational purposes only. The content is intended for general
awareness and does not constitute financial, investment, or policy advice. While we strive for accuracy, we recommend verifying key facts from official sources.
FAQs
1. Why is Apple making iPhones in India?
To reduce reliance on China and avoid tariffs by diversifying its supply chain.
2. Are India-made iPhones the same quality?
Yes, they meet Apple’s global quality standards.
3. Which iPhones are made in India?
iPhone 13, 14, and 15 series are currently made in India.
4. How many U.S. iPhones are from India?
Over 50% of iPhones sold in the U.S. in 2025 are made in India.
5. Is Apple expanding in India?
Yes, Apple plans to produce 35% of iPhones in India by 2027.
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