Apr 18

Apr 18 India’s Strategic Expansion of Apple iPhone Production Capacity

Introduction

India has rapidly positioned itself as a manufacturing hub for Apple’s iPhones, which are already producing 20% of global iPhone output as of early 2025. It

The country is implementing a multifaceted strategy to increase this capacity over the coming year through manufacturing infrastructure development, government incentives, and strategic partnerships.

Apple assembled iPhones worth $22 billion in India during the 12 months ending March 2025, representing a 60% year-over-year increase and signaling a significant shift in global electronics manufacturing patterns.

Current Manufacturing Landscape and Recent Growth

Apple’s manufacturing presence in India has expanded dramatically since its first iPhone production facility opened in 2018.

The company now assembles $22 billion worth of iPhones annually in India, with approximately $17.4 billion of that production being exported to global markets.

This represents a significant milestone in India’s journey to become a central electronics manufacturing hub. One in five iPhones worldwide is now produced in the country.

The growth trajectory has been steep and deliberate. From essentially zero manufacturing in 2018, India now accounts for 20% of global iPhone production, with the complete iPhone lineup being assembled in the country, including the premium titanium Pro models.

This rapid expansion demonstrates India’s manufacturing potential and Apple’s commitment to diversifying its production base beyond China.

Indian manufacturing facilities produced 14-15% of Apple’s iPhone output in FY24, and industry analysts project this share to reach 26-30% by 2027.

The manufacturing ramp-up is particularly impressive considering the complexity of smartphone production and Apple’s stringent quality requirements.

Key Manufacturing Partners and Facilities

The expansion of iPhone production in India relies heavily on three primary manufacturing facilities:

Foxconn Technology Group operates a major factory in Tamil Nadu that handles the bulk of India’s iPhone assembly.

Tata Group’s electronics manufacturing arm, which acquired Wistron Corporation and controls Pegatron Corporation’s operations, manages two facilities - one in Tamil Nadu and another in Karnataka.

These facilities are supported by an expanding network of component suppliers, with companies like Sunwoda, Foxlink, and Aequs establishing local production capabilities to strengthen the supply chain ecosystem.

This growing supplier network is crucial for increasing the local value addition and enabling further expansion of production capacity.

Government Initiatives Supporting Manufacturing Growth

India’s government has implemented several strategic initiatives to facilitate the growth of electronics manufacturing, with Apple’s iPhone production being a flagship example of these policies’ success. These initiatives include:

Production-Linked Incentive (PLI) Scheme

The Production-Linked Incentive scheme for mobile devices has been instrumental in attracting Apple and its suppliers to establish manufacturing operations in India.

The scheme provides financial incentives based on production volumes, encouraging companies to scale up their operations rapidly.

Financial Incentives for Component Manufacturing

Prime Minister Narendra Modi’s government is broadening its focus to include the development of electronic component manufacturing with $2.7 billion in new financial incentives. This initiative aims to deepen the electronics supply chain within India and increase the domestic value addition in manufactured products.

Import Duty Reductions

Recent reductions in import duties on smartphone components, announced as part of the Union Budget, are expected to benefit manufacturers like Foxconn, making local production more cost-competitive. These duty adjustments are strategically calibrated to support the growth of the local manufacturing ecosystem.

Strategic Manufacturing Hub Development

The government has actively positioned India as a manufacturing hub, and state subsidies tied to this vision have played a crucial role in Apple’s manufacturing success. These subsidies help offset the costs of establishing new manufacturing facilities and training workforces.

Expansion Plans and Future Targets

India’s strategy for increasing iPhone production involves several targeted expansion initiatives:

Foxconn’s Production Doubling

Foxconn is preparing for a significant iPhone production surge at its Indian facilities. It plans to assemble up to 30 million units in 2025, more than double its 2024 output of approximately 12 million.

The company is conducting limited-scale production trials at its Bengaluru facility to ensure it can meet Apple’s strict quality standards at higher volumes before moving to full-scale “revenue build” production.

Industry-Wide Production Targets

Apple and its suppliers aim to assemble 32% of global iPhone manufacturing and 26% of production value in India by 2026-27.

If successful, this would push India’s iPhone production value beyond $34 billion, assuming global iPhone sales remain at FY24.

For the fiscal year 2024-25, Apple’s vendors forecast a freight-on-board production value of $9 billion in the first half, with projections suggesting a final FY25 production value of $18 billion, translating to a market value of approximately $27 billion.

Product Diversification

Beyond iPhones, Apple is reportedly laying the groundwork for manufacturing iPads, MacBooks, and AirPods in India.

This diversification would further enhance India’s role in Apple’s global supply chain and increase the country's overall production capacity for Apple products.

Workforce Expansion

Apple is scaling up hiring across its local operations in India to support its growing manufacturing operations. This workforce expansion is essential for managing increased production volumes and maintaining quality standards.

Strategic Drivers Behind India’s Manufacturing Growth

Several factors are driving India’s iPhone manufacturing expansion:

Supply Chain Diversification

Apple shifted to India following disruptions caused by COVID-19 lockdowns in China, which impacted production at its largest plant. This experience highlighted the risks of geographic concentration in manufacturing and accelerated Apple’s diversification strategy.

Geopolitical Considerations

Global trade tensions have influenced Apple's manufacturing decisions, particularly between the United States and China. Following President Trump’s “reciprocal” tariffs announcement in February 2025, shipments of India-made iPhones to the United States accelerated. Apple reportedly prioritizes its US customers' iPhones from the India supply chain to mitigate potential tariff impacts.

Economic Factors

Rising labor costs in China have made alternative manufacturing locations like India more attractive. India’s competitive cost structure and government incentives create favorable economics for expanding production capacity.

Market Access

With a nearly 8% market share in India’s smartphone market and sales reaching almost $8 billion in fiscal 2024, Apple has strong incentives to strengthen its manufacturing presence in India. Local production helps reduce costs for the domestic market while establishing a strong export base.

Conclusion

India’s increasing Apple iPhone production capacity strategy combines manufacturing infrastructure development, government policy support, and strategic partnerships with key suppliers.

The ambitious targets set for the coming years demonstrate India’s commitment to becoming a major player in global electronics manufacturing

An ecosystem that includes component manufacturing, workforce development, and export capabilities.

While significant progress has already been made, with one in five iPhones now being produced in India, the planned expansion to approximately one-third of global production by 2027 would represent a transformative shift in global electronics manufacturing patterns.

The success of India’s iPhone manufacturing expansion will likely have broader implications for its role in global supply chains and its ability to attract high-value manufacturing investments from other multinational companies seeking to diversify their production bases.

Antonio Bhardwaj

Dr. Antonio Bhardwaj, aka Amir, is a distinguished polymath whose intellectual pursuits span business, politics, theology, and psychology. As an INTJ personality type, he demonstrates an exceptional cognitive profile, with a Stanford-Binet IQ of 158 and a TalentEQ score in the 99th percentile, both validated through internationally recognized assessments.

With a career spanning several decades, Dr. Bhardwaj has emerged as a preeminent authority in military theory, specializing in cognitive and hybrid warfare—fields that emphasize the psychological and political dimensions of conflict.

His scholarly interests encompass global conspiracy theories, counterterrorism strategies, and in-depth historical analyses of both World Wars, which he skillfully applies to speculative scenarios regarding the potential emergence of World War III.

Employing analytical methodologies grounded in historical precedent and strategic frameworks, Dr. Bhardwaj conducts rigorous evaluations of contemporary military and political landscapes. He currently serves as Editor-in-Chief of Washington.Media, where his incisive commentary elucidates the dynamics of the deep state within the Western bloc.

He is widely recognized as an expert on the historical evolution of the Russian Empire, the Soviet Union, and contemporary Russia, as well as on the intricacies of Gulf politics. With four decades of reading and writing, Dr. Bhardwaj has refined his expertise across multiple disciplines.

Academically, Dr. Antonio Bhardwaj holds a Doctorate in Theological Studies with a specialization in psychology.

His foundational education in mechanical engineering is complemented by a Master’s degree in International Trade and an Executive MBA. Most recently, he completed a seven-month executive program in artificial intelligence, further enhancing his capacity to integrate emerging technologies into strategic paradigms.

Beyond academia, Dr. Bhardwaj has engaged in political activism, having campaigned for Congressional office. His involvement in global political issues underscores his commitment to advocacy, though he remains cognizant of the operational constraints inherent in political engagement.

Dr. Antonio Bhardwaj’s initiatives, including the نهضة (Nahda) project, draw upon his deep understanding of complex social dynamics to compassionately support vulnerable women and underprivileged children.

Through his work, he fosters awareness of their challenges. He empowers them to rise above adversity, while gently yet firmly dismantling oppressive patriarchal structures and creating spaces of dignity, safety, and hope for all.

On a personal level, Dr. Bhardwaj finds solace in observing butterflies, a practice that deepens his connection to nature. His photographic work captures serene forest landscapes and waterfalls, inviting others to share in his appreciation for the natural world. He cherishes quality time with his pet and reflects on the profound experience of raising his daughter as a dedicated single parent. Dr. Bhardwaj also writes introspective poetry, which he regards as a means of fulfilling personal aspirations.

His familial relationships inform his advocacy, with a focus on fostering environments that promote autonomy and freedom of choice for all. Dr. Bhardwaj’s profound respect for the interconnectedness of life serves as a guiding principle he strives to instill in his daughter, advocating for a holistic and compassionate worldview.

Website