Apple Inc. assembled iPhones worth US$22 billion in India during the fiscal year ending March 2025, marking a 60% increase from the previous year.

Around 20% of iPhones are now made in India, as Apple aims to reduce reliance on China.

Most of the production takes place at Foxconn’s facility in southern India, with additional contributions from Tata Group, which acquired Wistron and manages Pegatron’s operations.

India exported US$17.4 billion worth of iPhones during the fiscal year, benefiting from government incentives under Prime Minister Modi’s push to make India a global manufacturing hub.

Apple now produces its entire iPhone lineup in India, including high-end models. However, despite this shift, Apple still heavily relies on China, with extensive supplier networks and infrastructure there.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Apple’s manufacturing journey reflects a complete reversal of its 1980s approach

Apple’s embrace of India represents a striking evolution from its original manufacturing strategy that began in 1980 with a 150,000 square foot plant in Carrollton, Texas 1.

The company’s early manufacturing history reveals an ambitious but ultimately unsuccessful attempt at domestic production, including a highly automated Macintosh facility in Fremont, California that opened in 1983 but struggled with operational inefficiencies 2.

By 2004, Apple had closed its last U.S. manufacturing line, completing a shift to overseas production that former CEO Steve Jobs frankly admitted to President Obama when he stated, “Those jobs aren’t coming back” 3.

This transition was driven by China’s ability to hire thousands of workers almost overnight and complete iPhone assembly in just 26 minutes per unit, capabilities that U.S. facilities couldn’t match 3.

The current $22 billion production value in India represents a strategic diversification that addresses both geopolitical risks and manufacturing efficiency, creating a dual-hub model that reduces Apple’s vulnerability to disruptions in any single region.

2️⃣ India’s emergence reflects complex value beyond labor costs

India’s rise as Apple’s second-largest production hub goes beyond simple cost advantages, representing a comprehensive economic ecosystem development.

Apple’s rapid scaling in India—now producing one in five iPhones globally—stems partly from substantial government support similar to what helped establish “iPhone City” in Zhengzhou, China, which received $600 million in subsidies 4.

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