Apple has made a groundbreaking decision that could reshape the global smartphone supply chain: by 2026, all iPhones destined for the U.S. market will be manufactured in India.
This move marks a major shift in Apple’s production strategy, driven by rising trade tensions with China and a push to diversify its supply chain.
Why Apple is Moving iPhone Production to India
Apple has been gradually reducing its reliance on China over the past few years. The COVID-19 pandemic, rising labor costs, and escalating geopolitical tensions highlighted the risks of depending too heavily on one country. India, on the other hand, offers a stable alternative with several key advantages:
- Lower labor costs compared to China.
- Favorable government policies, including the “Make in India” initiative and Production Linked Incentive (PLI) schemes.
- Reduced import duties by manufacturing locally.
- Rapidly growing smartphone market, presenting long-term sales opportunities, Current iPhone Manufacturing Landscape in India
The main player is Foxconn, Apple’s largest manufacturing partner globally. Other key partners include Tata Electronics and Pegatron, who are also expanding their production capabilities in the country.
In 2024-25, India produced iPhones worth $22 billion (approx. ₹1.88 lakh crore), with exports totaling $17.4 billion (approx. ₹1.49 lakh crore).
Doubling iPhone Production by 2026
India’s annual iPhone production capacity is set to more than double to over 60 million units by 2026.
Around 70% of iPhones made in India are exported, helping Apple avoid high tariffs that come with manufacturing in China. In 2024 alone, India exported iPhones worth $12.8 billion (₹1,09,655 crore), and this number is expected to rise sharply.
Economic and Workforce Impact due to iPhone manufacture
Apple’s increasing focus on India is creating thousands of jobs and boosting skill development. Foxconn, for example, is investing $2.7 billion in a new facility in Karnataka, which will train local workers in advanced manufacturing technologies.
The shift is also a win for the Indian economy, as it strengthens the country’s position as a global tech manufacturing hub.
What This Means for Apple and India
For Apple, the move ensures a more resilient and cost-effective supply chain, free from overdependence on one region. For India, it means more investments, better jobs, and enhanced technological capabilities.
With Apple’s market share in India currently around 6-7%, local production could help the brand become more competitive and accessible in the fast-growing Indian smartphone market.
