Apple Inc. is expanding its manufacturing in India. The company assembled USD 22 billion worth of iPhones in India in the 12 months ended March, representing a nearly 60% increase in production compared to the previous year. This surge highlights Apple’s ongoing efforts to diversify its supply chain away from China. As of now, Apple manufactures approximately 20%, or one in five, of its iPhones in India.

Apple and its suppliers have been accelerating their shift to India, a strategy initiated during the COVID-19 pandemic when strict lockdowns disrupted operations at Apple’s largest plant in China. The majority of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Additionally, Tata Group’s electronics manufacturing division, which recently acquired Wistron Corp. and manages Pegatron Corp.'s operations, has emerged as a key contributor to Apple's supply chain.

Out of the total iPhones produced in India, Apple exported USD 17.4 billion worth in the fiscal year ending March 2025. iPhone shipments from India to the United States surged after U.S. President Donald Trump’s announcement regarding “reciprocal” tariffs. Throughout the fiscal year, Apple’s average production and exports from India witnessed significant growth.

This shift towards Indian manufacturing aligns with Apple’s long-term strategy to reduce dependence on China. While the transition is gradual, it is strongly supported by Indian government incentives aimed at positioning the country as a global electronics manufacturing hub. The government has committed approximately USD 2.7 billion in incentives to boost local electronics and component production. Despite these efforts, Bloomberg Intelligence estimates it may take up to eight years for Apple to shift just 10% of its production out of China.

A notable advantage for Apple is the exemption of Indian-made iPhones from United States tariffs. Recent policy decisions have excluded certain electronics, including iPhones, from reciprocal tariffs, providing a significant boost as Apple continues its shift from China to India. However, broader tariffs on Chinese imports remain, underlining the complexity and long-term nature of this transition.

Similarly, Vietnam enjoys tariff-free exports of Samsung smartphones and other major electronics to American markets. According to the India Cellular and Electronics Association (ICEA), this gives both countries up to a 20% pricing advantage over Chinese-manufactured products in the U.S. ICEA represents key industry players, including Apple, Foxconn, Xiaomi, Dixon, and Lava.