Apple is significantly increasing its focus on India, with its vendors expanding operations to support this strategic push. This move aligns with Apple's broader strategy of diversifying its supply chain beyond China.
Vendor Expansion and Investment
Several key Apple vendors are making substantial investments to bolster their presence in India. Foxconn, a primary contract manufacturer for Apple, is significantly increasing its iPhone production capacity in India. The company is reportedly aiming to double its iPhone production to between 25 and 30 million units in 2025. Foxconn has also received approval to invest over $2.2 billion in India and the United States, with $1.49 billion earmarked for establishing an iPhone manufacturing facility in India. This facility will support Apple's production shift. Furthermore, Foxconn's subsidiary, Yuzhan Technology India, is investing $1.5 billion to manufacture electronic components and assemble iPhones in Tamil Nadu. Yuzhan Technology has also begun exporting display modules from its new unit in Tamil Nadu.
TD Connex is planning a substantial investment to expand its facilities. These expansions indicate a growing confidence in India's manufacturing capabilities and its importance in Apple's global strategy.
Production and Export Growth
Apple's iPhone production in India has seen a significant surge. In the first half of 2025, iPhone production in India jumped 53% year-on-year, reaching 23.9 million units. Export volumes also increased by 52% to 22.88 million units, valued at $22.56 billion. Overall, Apple assembled $22 billion worth of iPhones in India in the financial year ending March 2025, a 60% increase over the previous year. This surge has elevated India's share of global iPhone production to 20%, up from an estimated 12% in 2023. The Indian government has also acknowledged this growth, with officials noting the country's increasing role in global tech manufacturing. In fiscal year 2025, Apple exported ₹1.5 trillion ($17.4 billion) worth of iPhones from India.
Supply Chain Development
Apple is actively expanding its supply chain network in India. The company has brought nearly 45 companies into its domestic ecosystem, including local component makers and MSMEs. These companies include Tata Electronics, Aequs, Jabil, Microplastics, ATL, Salcomp, Foxlink, Motherson, Bharat Forge, Wipro PARI, and Hindalco. It is expected that many of these suppliers will apply for the government’s Production-Linked Incentive (PLI) scheme for component manufacturing. Apple is also partnering with Indian companies to source machinery for iPhone manufacturing. This move aims to reduce reliance on Chinese machinery and build a more resilient supply chain in India.
Strategic Implications
Apple's increased focus on India is driven by several factors, including geopolitical tensions, the desire to diversify its supply chain, and the potential for cost efficiencies. By expanding its operations in India, Apple aims to mitigate risks associated with its heavy reliance on China. India offers several advantages, including lower labor costs and government incentives such as the PLI scheme. The Indian government is aiming to increase domestic value addition in electronics manufacturing to 30-40%. Apple is also reportedly planning to undertake simultaneous day-one manufacturing of the upcoming iPhone 17 in China and India. This would mark a significant milestone in Apple's India strategy.
