**India**: Apple is doubling iPhone production in India to over 80 million units by 2026, aiming to supply the majority of US iPhones from Indian facilities. This strategic shift responds to China lockdowns, tariffs, and geopolitical tensions, boosting Indian exports and leveraging local manufacturing partnerships.
Apple is significantly expanding its iPhone manufacturing operations in India, with plans to source the majority of iPhones sold in the United States from its Indian production facilities by the end of 2026. This strategic shift marks a substantial move away from the company’s traditional manufacturing base in China and reflects broader trends in global supply chain realignment in response to geopolitical tensions and trade tariffs.
The technology giant aims to double its annual iPhone output in India from just over 40 million units in the fiscal year ending March 2025 to more than 80 million units. This increase is especially notable given that Apple sells more than 60 million iPhones annually in the U.S. alone. The company’s representatives in India have not publicly commented on this development.
Several factors have influenced this redirection of production. Apple experienced significant disruptions at its largest manufacturing plant in China due to stringent COVID-19 lockdowns. Additionally, tariffs imposed during the Trump administration accelerated Apple’s strategy to reduce reliance on Chinese manufacturing. Over the past year, Apple has seen a nearly 60 percent increase in its Indian production, assembling around $22 billion worth of iPhones there.
Key to this expansion is Apple’s partnership with prominent manufacturing firms in India. Most iPhones assembled domestically are produced at Foxconn Technology Group’s factory in southern India. Moreover, the Tata Group’s electronics manufacturing arm, which took over Wistron Corp.’s local operations and manages Pegatron Corp.’s Indian facilities, is also scaling up its production capabilities in the region. Both Foxconn and Tata are poised to deepen their manufacturing presence, helping to solidify India’s role as a vital component of Apple’s global supply chain.
The growth in Apple’s Indian operations has also contributed to a substantial rise in exports from the country. In the fiscal year ending March 2025, Apple exported about 1.5 trillion rupees (approximately $17.5 billion) worth of iPhones. This surge in shipments to the United States aligns with the period following the introduction of reciprocal tariffs — a complex tariff landscape remains, particularly concerning ongoing duties on Chinese imports. Recent exemptions for electronic goods, including smartphones, have provided some alleviation but have not fully resolved these challenges.
Apple’s expansion benefits from state subsidies under initiatives aimed at transforming India into a global manufacturing hub. These efforts are in line with Indian Prime Minister Narendra Modi’s economic growth vision to strengthen domestic manufacturing capabilities and enhance the country’s role in international trade.
This development highlights a marked shift in Apple’s manufacturing approach, prioritising diversification and mitigating potential risks posed by geopolitical uncertainties and global trade dynamics.
Source: Noah Wire Services
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