Apple Inc. Increases iPhone Production in India by 53% in 2025

Overview

Apple Inc. has significantly increased its iPhone production in India, with the country now accounting for approximately 25% of the company's global iPhone production. This represents a 53% increase in production from 2024 to 2025, with Apple assembling about 55 million iPhones in India last year.

Expansion in India

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Apple's expansion in India has been accelerated in recent years, driven by Prime Minister Narendra Modi's production-linked incentives aimed at turning India into the world's factory. The company has been bolstered by these subsidies, which have helped offset some of the structural cost disadvantages in India, including a lack of a robust supply chain and logistics challenges.

Tariff Impact from China

The US tariffs related to the trade war with China have had a significant impact on Apple's production in the country. Shipments from China faced headwinds in 2025, prompting Apple to move a greater share of devices meant for the American market to alternative manufacturing destinations, with India emerging as a major brightspot.

Cost Competitiveness

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Although the gap has narrowed, electronics assembly and component manufacturing still costs more in India than in countries including China and Vietnam. To remain cost competitive, companies such as Apple and Samsung Electronics Co. are seeking more government support.

Government Support and Export Growth

Companiess are discussing with New Delhi another round of incentives to support export growth. India's current production subsidies for smartphones expire on March 31, and with the US Supreme Court striking down some of the duties affecting China, India needs to move quickly to remain cost competitive.

Supply Chain Strategy

Apple is deepening and widening its local supplier partnerships to make components including lithium-ion cells, watch and phone enclosures, and accessories such as AirPods. The company is targeting market share gains in a region where sales have surged past $9 billion and is preparing to launch Apple Pay in India later this year.

Retail Network

Apple's retail network in India now comprises six stores, underscoring the country's growing importance as not just a production hub but also a fast-growing consumer market.