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Apple's India exports hit $17.4 billion amid shifting supply chains and Trump-era tariffs. (Image credit: Apple website)

Apple ramps up India iPhone production to $22 billion, deepens shift from China: Report

| @indiablooms | Apr 13, 2025, at 04:50 pm

Bengaluru: Apple Inc. assembled $22 billion worth of iPhones in India in the year through March 2025, marking a nearly 60% year-on-year jump as the tech giant steps up efforts to diversify beyond China, Bloomberg reported.

About one in five iPhones is now made in India, according to people familiar with the matter, according to the report.

Foxconn, Tata key local partners in India

Much of the India output comes from Foxconn’s facility in southern India. Tata Group, which recently acquired Wistron and oversees Pegatron’s local operations, is another major contributor. Apple now manufactures its entire iPhone lineup in India, including the premium titanium Pro models.

iPhone exports surge amid tariff shifts

India exported ₹1.5 trillion ($17.4 billion) worth of iPhones in FY25, according to the country’s tech minister. Exports to the US rose after President Trump announced new “reciprocal” tariffs in February, prompting Apple to prioritise India-assembled devices for American customers.

Tariff exemption boosts India-made iPhones

The Trump administration recently exempted electronics — including smartphones — from its new tariffs, a relief for Apple and other tech firms. While China still faces cumulative duties of 145%, iPhones made in India currently avoid those levies.

Challenges in shifting away from China

Despite Apple’s accelerating pivot, China remains deeply embedded in its supply chain with nearly 200 suppliers. Moving significant capacity elsewhere could take years. Bloomberg earlier estimated it would take eight years to shift just 10% of production from China.

Modi’s incentives drive local manufacturing

India’s rise in Apple’s supply chain is bolstered by government subsidies aligned with Prime Minister Modi’s push to position India as a manufacturing hub. New incentives worth $2.7 billion aim to expand electronics and semiconductor production.

India sales touch $8 billion

Apple's sales in India reached nearly $8 billion in FY24, with iPhones accounting for the majority. The company currently holds an 8% share in the Indian smartphone market.

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