In India, Apple Assembles iPhones Valued About $22 billion

According to a media report, Apple has significantly changed its global supply chain strategy by increasing its iPhone production in India to an all-time high. Now the tech giant assembles smartphones valued at $22 billion in India. The action is a reflection of Apple's increased efforts to expand its manufacturing presence in India and lessen its dependency on China. About 20% of all iPhones made worldwide are currently made in India, where production of the device increased by about 60% in the past year, according to the report. This effort follows India's Production-Linked Incentive (PLI) program, which has been instrumental in drawing in large international electronics firms. India's IT and Electronics Minister Ashwini Vaishnaw disclosed earlier this week that during the fiscal year that ended in March 2025, Apple exported iPhones valued at INR 1.5 trillion, or roughly $17.4 billion. Three iPhone assembly facilities are now run by Apple in India: two in Tamil Nadu and one in Karnataka. Two of the Tamil Nadu plants are run by the Tata Group, while the other one is run by the Taiwanese behemoth Foxconn.

Apple Urging Suppliers to Establish Units in India

China, Japan, and Taiwan vendors have been actively encouraged by Apple to set up production facilities in India. Important component producers have already started production in the nation, including Foxlink (cables), Sunwoda (battery packs), and Aequs (enclosures). There has also been a notable increase in local content in Apple's iPhones manufactured in India. Just 5–8% of the parts in different models were sourced locally when Apple started manufacturing in India in 2020. That percentage has now increased to about 20%. According to reports, Apple has branched out beyond the basic iPhone models, indicating a growing trust in its Indian business. According to Bloomberg, the company has begun constructing the more expensive iPhone 16 Pro models in India, although it first concentrated on assembling the entry-level iPhone 15 model.

All Developments Favouring India

Additionally, the spike in iPhone exports from India seems to be well-timed in relation to recent trade developments in the United States. As per various media reports, Apple's exports to the United States from India have increased significantly since the Trump administration imposed high tariffs on Chinese goods. In order to deal with the new tariff environment, Apple is anticipated to give its India supply chain top priority for iPhone shipments headed to the United States. The Trump administration declared on 12 April that laptops, smartphones, and other important equipment will be temporarily spared from the reciprocal duties. As a result, iPhones manufactured in India will not be subject to additional taxes for the time being, while iPhones from China will also be subject to a 20% tariff rate, which is much less than the entire 145% that would otherwise be applicable.