Chips & Hardware
Apple now manufactures 25% of its iPhones in India
Apple now manufactures 25% of its iPhones in India, a strategic shift to reduce reliance on China that has drawn scrutiny from U.S. leadership.
Apple has reached a significant manufacturing milestone, with 25% of its total iPhone production now based in India. This shift represents a clear strategic pivot intended to reduce the company’s reliance on China. The milestone aligns with a prediction made by financial services firm JPMorgan back in 2022, which anticipated the scale of Apple’s long-term plan to diversify its supply chain.
The scale of this manufacturing transition is substantial. Last year, India accounted for 55 million iPhones of the roughly 220 million to 230 million produced worldwide, according to a report by Bloomberg. Apple has moved quickly to deepen this commitment, manufacturing the entire iPhone 17 lineup in India ahead of last September’s launch. Apple CEO Tim Cook also stated that the majority of U.S. demand for iPhones is now fulfilled by India-made units.
However, this diversification strategy has faced political friction. The shift in production accelerated in 2025 as Apple faced uncertainty in China due to changing U.S. tariff rules—which act as government taxes on imported goods. The geopolitical stakes of this expansion became clear in May, when President Donald Trump personally warned Cook against expanding further in India during a business summit in Doha.
Beyond manufacturing, India is also emerging as a critical consumer market for Apple. According to analyst firm Counterpoint, Apple shipped 14 million units in India last year, representing a 9% year-over-year growth in shipments. Separately, Bloomberg reported that total iPhone sales in the country surpassed $9 billion last year. To support this growing consumer base, Apple opened its sixth Indian store last month and is reportedly in talks to launch its digital payment service, Apple Pay, in India this year.
Why it matters
Apple’s manufacturing pivot is a high-stakes balancing act: the company must navigate U.S. political pressure and tariff uncertainty while simultaneously capturing the growing Indian consumer market.