Shifting the iPhone Production Giant: Apple's Move to India
iPhones' manufacturing will transition to India in the foreseeable future, as reported by Apple.
In an unprecedented turn of events, tech titan Apple is planning a massive overhaul of its iPhone production process, with India poised to hold the reins in the upcoming years. This strategic decision, as reported by Press Trust of India, comes on the heels of geopolitical pressures, tariffs, and a determination to diversify manufacturing away from the traditional powerhouse – China.
Communications Minister Jyotiraditya Scindia declared at a recent conference in New Delhi, "When you invest in India, you choose accessibility, reliability, and originality." This statement echoes Apple's apparent conviction in the country's industrial prowess and economic advantages.
Scindia's words corroborate earlier statements made by Taiwanese company Foxconn, who announced plans to set up a new factory in India for producing Apple goods. This decision, prompted by new tariffs on China, is set to materialize in the Indian city of Bangalore, spanning an expansive area of 1.2 million square meters.
The planned factory aims to significantly boost iPhone production volumes in India, with estimates suggesting the capacity to produce 30 million smartphones annually. However, to achieve Apple's ambition of assembling all U.S.-bound iPhones in India by the end of 2026, the company will need to double its current production capacity in the country.
India's growing potential as a manufacturing hub for Apple products is further highlighted by the fact that one in five iPhones sold globally is already made in India. Furthermore, the country has demonstrated its ability to manufacture the entire iPhone range, including premium models. In the fiscal year ending March 2025, Apple’s iPhone production in India reached $22 billion, a 60% increase from the previous year.
The expansion of iPhone production in India is also a response to disruptions in China, such as strict COVID-related lockdowns, and renewed U.S.-China trade tensions. These factors have led to increased tariffs on Chinese goods and prompted Apple to shift more of its supply chain to India.
Comparatively, while China is still a major supplier of iPhones, India's production share is on the rise. Additionally, India is becoming a key export hub, especially for the U.S. market, due to favorable tariff policies and government incentives.
Apple's production ramp-up in India is a significant departure from the traditional Chinese manufacturing landscape. This shift, driven by geopolitical factors, supply chain resilience, and market access, underscores India's emergence as a critical manufacturing base alongside – and increasingly instead of – China.
However, scaling up capacity and ensuring component supply in India will pose challenges for Apple. Bloomberg estimates it could take up to eight years to shift just 10% of Apple’s production capacity from China. Nevertheless, India's industrial growth and government support make it an attractive alternative for Apple's global manufacturing needs.
I'm not sure if this decision completely eliminates Apple's reliance on the finance and business ties with China, especially in the technology industry. However, with India's growing potential as a manufacturing hub for Apple products and the country's significant contribution to iPhone production, it's plausible that the tech giant might be exploring new financial and business opportunities in the Indian industry.
