Apple is rapidly expanding its iPhone manufacturing capabilities in India and is on track to achieve its target of producing 25% of its devices in the country by the end of this year. Recent reports indicate that one in five iPhones, or 20%, are now made in India, reflecting a significant increase in production capacity.
This rapid growth represents a 60% increase in India’s manufacturing output compared to last year, amounting to an estimated $22 billion worth of iPhones being produced annually, with $17.4 billion of that being exported to other markets.
A Significant Milestone
This achievement marks a remarkable transition for Apple, which had no manufacturing presence in India as recently as 2018 when the first Wistron factory officially began operations. The company’s manufacturing strategy in India has rapidly evolved, and it is expected to hit 25% production by the year’s end.
Currently, Apple’s iPhones are produced at three main factories: two in Tamil Nadu operated by Foxconn and Tata Group, and one in Karnataka run by Tata Group. Additionally, critical suppliers such as Sunwoda, Foxlink, and Aequs are establishing their own facilities in India to support Apple’s operations.
India’s IT and Electronics Minister, Ashwini Vaishnaw, recently reported that Apple exported $17.4 billion worth of iPhones in the year ending March 2025. The volume of exports is expected to increase, particularly as Apple moves to ship larger quantities of iPhones to the U.S. in order to navigate tariff challenges that have recently been adjusted.
Challenges of Scaling Production
One important takeaway from Apple’s journey to achieve 20% of its iPhone production in India is the long timeline involved. It took nearly seven years for Apple to reach this milestone from a standing start, highlighting that scaling manufacturing in new regions is not a straightforward process.
India offers several advantages for manufacturing, including a highly literate and skilled workforce, ample space, and lower wage costs compared to the U.S. Additionally, substantial government incentives have made India an attractive locale for production. Nevertheless, the seven-year timeline to reach 20% output serves as a reminder of the challenges involved in relocating production, particularly to regions with fewer inherent benefits.
Apple has even had to implement changes at airports to facilitate its operations, showcasing the logistical challenges that can arise when establishing a new manufacturing base.
Credit: AppleMust
