In the previous fiscal year, Apple saw a significant increase in iPhone production in India, reaching $14 billion. This move is part of Cupertino’s strategy to reduce its reliance on Chinese manufacturing. Currently, about 14% of iPhones worldwide are made in India, which translates to roughly 1 in every 7 iPhones.
This shift towards manufacturing in India is a result of Apple’s efforts to diversify its production locations amidst escalating geopolitical tensions. While China remains the primary hub for manufacturing and the largest international market for iPhones, India is becoming an increasingly important player in Apple’s global supply chain.
Prime Minister Narendra Modi’s administration has played a crucial role in attracting foreign companies like Apple to invest in manufacturing facilities in India by offering financial incentives. As a result, approximately 150,000 direct jobs have been created at Apple’s supplier facilities in the country.
Foxconn and Pegatron are the key players responsible for assembling the majority of iPhones produced in India, with Wistron Corp.’s facility in Karnataka – now owned by Tata Group – also contributing to production. The estimated factory value of these iPhones has reached $14 billion, although specific retail prices have not been disclosed by Apple.
Despite expanding its manufacturing operations in India, Apple CEO Tim Cook has maintained positive relations with Chinese officials during this period of geographic diversification. Cook has made strategic visits to China to engage with government officials and promote Apple’s presence in the country.
Apple currently manufactures a range of iPhone models in India, from the iPhone 12 to the iPhone 15 (excluding Pro and Pro Max models). These devices are primarily exported from India, where Apple holds a 6% market share amid competition from more affordable Chinese smartphone brands.
India’s market is experiencing rapid growth due to factors such as an expanding middle class, increased internet penetration, and strong government support for technology companies. In response to this growth potential, Apple has opened two stores in New Delhi and Mumbai last year and plans to launch three more stores by 2027 to further establish its presence in the Indian market.
