Apple moves quarter of iPhone production to India as exports surge
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Apple has crossed a major milestone in its effort to rewire its global supply chain. By December 2025, the company exported more than $50 billion worth of iPhones from India, according to data confirmed by Indian government officials. The figure marks a dramatic rise in India’s role as a manufacturing hub and a key pillar in Apple’s diversification strategy away from China.
The exports are largely the result of Apple’s participation in India’s Production Linked Incentive, or PLI, scheme, which it joined in the 2021–22 financial year. Under the initiative, global electronics manufacturers receive subsidies based on incremental production and export volume.
The results have been swift. In less than four years, iPhone exports from India have grown to account for the majority of the country’s smartphone shipments. During the first nine months of the 2025–26 fiscal year, iPhone shipments totaled nearly $16 billion, making mobile phones India’s largest single export category in 2024–25.
Government officials say the performance reflects a broader sixfold increase in electronics production under the national “Make in India” initiative, which has become a central economic policy. Apple’s success in India signals the beginning of a deeper shift in the global technology manufacturing landscape.
From assembly to full supply chain
India’s role in the Apple ecosystem is expanding beyond the final stages of iPhone assembly. According to reporting in the Times of India, the country has begun exporting selected electronic components to China and Vietnam, where they are integrated into products such as Macs, Apple Watches and AirPods. The flow of components from India to traditional production hubs highlights Apple’s gradual realignment of its supply chain.
The company’s operational footprint in India now includes five major assembly facilities. Three of these are operated by Tata Group, which has rapidly expanded into high-tech manufacturing, and the remaining two by Foxconn, Apple’s largest contract manufacturer. This physical infrastructure is supported by a growing ecosystem of roughly 45 component suppliers, allowing for greater vertical integration within India.
What began as a cost-conscious diversification play is now evolving into a longer-term strategic shift. Apple is building the foundations for a manufacturing network that can reduce geopolitical exposure, limit dependency on any single country and enhance operational resilience.
India’s success in integrating upstream suppliers into its electronics industry marks a departure from its historic role as a low-cost assembly destination. Apple’s increasing reliance on Indian supply chain partners indicates growing confidence in the country’s technological capabilities and policy environment.
Apple vs Samsung and the Export Race
The pace and scale of Apple’s growth in India has eclipsed other major manufacturers, including Samsung, which also participated in the PLI scheme. Between 2020–21 and 2024–25, Samsung exported an estimated $17 billion worth of devices from India. In contrast, Apple’s iPhone exports surpassed $50 billion in less than four years.
This rapid expansion underscores Apple’s strategic approach. Unlike other firms that focus primarily on serving India’s domestic market, Apple has prioritized export-led growth. Its iPhones produced in India are largely destined for high-value markets, including the United States and Europe.
The company’s emphasis on premium products and higher-margin devices has enabled it to justify faster investment in supply chain development. That strategy has paid off. Industry estimates suggest India now accounts for approximately 25 percent of global iPhone production, up from single digits just a few years ago.
Geopolitics, cost and long-term strategy
Apple’s move into India is not just about growth. It is also about risk management. Amid rising geopolitical tensions between the United States and China, Apple is taking steps to reduce its reliance on its traditional manufacturing base. As of 2025, about 80 percent of iPhones are still made in China, but that figure is expected to decline sharply.
The company is reportedly planning to shift the majority of iPhones sold in the U.S. to Indian production lines by the end of 2026. Apple sells more than 60 million iPhones annually in the American market, making this a significant reallocation of manufacturing.
The cost differential between India and China remains a challenge. Estimates suggest that producing iPhones in India is 5 to 8 percent more expensive, and could rise to 10 percent in some cases. However, Apple is believed to be absorbing those costs in exchange for enhanced supply chain flexibility and reduced exposure to regulatory and geopolitical disruptions.
India’s share of iPhone production is expected to climb to between 26 and 30 percent by 2027. If Apple’s trajectory continues, India will no longer be a secondary node in its global network. It will become central to the future of how and where Apple builds its most iconic product.
Sources