Apple is looking to shift more than 25% of the global iPhone production from China to India by the end of 2026, as the US’ tariffs and trade tensions with Beijing provide a clear advantage to India.
At the end of FY25, India’s share in the global production of iPhones rose to 20%, from 14% in FY24. In a span of just four years, iPhone production in India rose from nil to 20%.
In the ongoing tariff war triggered by US President Donald Trump, India has an advantage over China, which produces the remaining 80% of iPhones for the Chinese market and exports. If this advantage sustains, Apple could think of shifting even a larger quantum of its production to India.
For example, an iPhone assembled in China incurs a 20% tariff upon entering the US, increasing its cost to distributors or consumers. An iPhone from India, facing no such tariff, is inherently cheaper, allowing Apple to either maintain competitive pricing or improve margins.
According to filings made by Apple’s vendors, the company produced iPhones worth $22 billion, or nearly 40 million handsets, in India during FY25. Since Apple produces and sells anything between 200 and 220 million iPhones worldwide each year, the Indian production figure corresponds to a fifth of Apple’s global iPhone production.
This feat was achieved via Apple’s three contract manufacturers — Foxconn and Pegatron which operate factories in Tamil Nadu, and Tata Electronics (earlier Wistron) which operates a factory in Karnataka. As many as 32 million iPhones worth $17.5 billion, out of the 40 million phones made in India, were exported mainly to the US and Europe, and some to West Asia.
Apple typically lands its exports in Chicago for the US market, Amsterdam for Europe, and Dubai to serve West Asian countries.
Apple began shifting iPhone production to India after the government announced the smartphone production-linked incentive scheme (PLI) in 2020. In FY22, its first year, it produced iPhones worth $2 billion, of which 60% were exported. In the second year, it more than tripled production to reach the $7-billion mark, of which 71% iPhones were exported. In FY24, Apple doubled its production to $14 billion. It also mirrored this growth in exports which doubled from $5 billion in FY23 to $10.3 billion in FY24.
In FY25, Apple’s production increased over 57% to $22 billion, while exports rose sharply by 70% to reach the $17.5-billion figure.
As reported earlier, Apple airlifted iPhones worth $6.7 billion between January and March this year.
Source Code : https://www.financialexpress.com/
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