Apple significantly increased its iPhone production in India by approximately 53% last year, with the country now accounting for a quarter of the company's total flagship device output. According to informed sources, Apple plans to assemble around 55 million iPhones in India during 2025, up from 36 million units the previous year. The company manufactures approximately 220 to 230 million iPhones globally each year, with India's share growing rapidly. In recent years, driven by Indian Prime Minister Narendra Modi's production-linked incentive scheme aimed at establishing India as a "global manufacturing hub," Apple has accelerated its expansion in the world's most populous country. These subsidies help offset some structural cost disadvantages faced by Indian manufacturers, such as the lack of a robust supply chain comparable to China's and logistical challenges. In 2025, iPhone shipments from China, which remains the primary production base, face headwinds due to US tariff hikes stemming from the Sino-US trade war. These tariffs are compelling Apple and its suppliers to shift more US-market device production to alternative locations, with India emerging as a prominent beneficiary. Although the gap is narrowing, the cost of electronics assembly and component manufacturing in India remains higher than in countries like China and Vietnam. This situation is prompting companies, including Apple and Samsung Electronics, to seek additional support from the Indian government. Firms are currently in discussions with New Delhi regarding a new round of incentives to bolster export growth. India's existing production subsidies for smartphones are set to expire on March 31, and with the US Supreme Court having invalidated certain tariffs on China, India needs to act swiftly to maintain cost competitiveness. The Cupertino, California-based company currently assembles all models of the latest iPhone 17 series in India, including the high-end Pro and Pro Max variants. Its suppliers in India, such as Foxconn, Tata Electronics, and Pegatron, also manufacture older models like the iPhone 15 and iPhone 16 for both local sales and export. The growth in Indian production underscores Apple's long-term supply chain strategy to establish a second major iPhone production base to meet global demand. The company is deepening and expanding partnerships with local suppliers to produce components, including lithium-ion batteries, casings for watches and phones, and accessories like AirPods. Beyond manufacturing, Apple is focused on increasing its market share in India, where sales have surged to over $9 billion. The planned introduction of Apple Pay in India later this year, along with an existing retail network of six stores, highlights the country's growing importance as both a production center and a rapidly expanding consumer market for Apple.
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