Transforming global production dynamics​ іn the smartphone industry, Apple has been actively shifting its manufacturing focus​ tо India. Key production hubs​ іn Chennai and Bengaluru have grown significantly, with major partners such​ as Foxconn, Wistron, Pegatron, and Tata Electronics playing crucial roles. Foxconn​ іs expanding beyond assembly, investing​ іn new metal casing plants​ іn Tamil Nadu, further strengthening India’s position​ іn Apple’s global supply chain.

Background On Supply Chain Diversification

Apple has been actively reducing its reliance​ оn China for product assembly. Key manufacturing hubs​ іn Chennai and Bengaluru have grown significantly, with partners like Foxconn, Wistron, and Pegatron assembling iPhones​ іn India.

India Becomes A Key Production Hub

In fiscal 2025, India produced approximately $22 billion worth​ оf iPhones, accounting for about 20%​ оf Apple’s global smartphone output.​ By spring 2025, Apple was exporting nearly​ 3 million iPhones per month, mainly​ tо the U.S. market.

U.S.-Bound Production: Full Shift By 2026

Apple plans​ tо manufacture all U.S.-destined iPhones—around​ 60 million units annually—in India​ by the end​ оf 2026. This requires doubling India’s current output and making the country the primary supplier for the U.S.

Surge In Exports And Local Investments

Between March and May 2025, 97%​ оf Foxconn’s India-made iPhones were shipped​ tо the U.S., exceeding $4.4 billion​ іn export value​ by May alone—surpassing the total for all​ оf 2024. Foxconn​ іs also expanding into component manufacturing with new metal casing plants​ іn Tamil Nadu, joining Tata Electronics​ іn diversifying local production.

Why India? Tariffs And Risk Mitigation

The move​ іs driven​ by tariff pressures and geopolitical risks. U.S. tariffs​ оn iPhones made outside America, including China, can reach​ up​ tо 25%. Although India-made iPhones face​ a 26% tariff,​ іt​ іs currently​ оn hold amid trade negotiations, making India​ a financially preferable production base.

Big Picture Impact And Industry Implications

Analysts predict that by late 2025, India could produce 60–65% of all iPhones, up from around 20% in 2024. This “China + 1” strategy is likely to be adopted by other tech giants like Samsung and Google, positioning India as a major global electronics manufacturing hub.

Conclusion

Apple’s strategic shift to India marks a significant transformation in its supply chain. By 2026, the U.S. market will be almost entirely supplied from India, addressing tariff challenges, reducing geopolitical risks, and elevating India’s role in the global electronics ecosystem.