All iPhone made in America will now be built in India: Production can be removed from China by 2026, more than 6 crore iPhone will be made
Apple is going to produce all the iPhone sold in the US from next year in India. The company has decided by US President Donald Trump keeping in mind the tariffs on countries around the world and tariff war with China. The Financial Times has released a report on this.
By 2026, more than 6 crore iPhone will be produced in the country annually
To reduce its dependence on China, Apple has been trying to remove its supply chain from there for a long time. If Apple shifts its assembly to India by the end of this year, then after 2026, more than 6 crore iPhone will be produced here annually. It is twice the current capacity.
Right now China dominates iPhone production
Currently, China dominates the construction of iPhone. According to the IDC, in 2024, its share in the company’s total global iPhone shipment will be around 28%. The company will be free from heavy tariffs by removing the construction of iPhone sold in the US domestic market from China.
Construction of iPhone increased by 60% from March 24 to March 25
During 12 months from March 2024 to March 2025, Apple produced iPhone worth $ 22 billion (about ₹ 1.88 lakh crore) in India. It has increased by 60% from last year.
Meanwhile, Apple exported iPhone worth $ 17.4 billion (about ₹ 1.49 lakh crore) from India. At the same time, one in every 5 iPhone in the world is now being made in India. The iPhone in India is being constructed at Tamil Nadu and Karnataka plants.
Most of its production is Foxconn. Foxconn is Apple’s largest production partner. Apart from this, Tata Electronics and Pagtron also manufacturing.
$ 8 billion iPhone sales in FY 2024
In FY 2024, Apple’s smartphone sales was $ 8 billion. However, its share in the market was just 8%. The iPhone remains a luxury item for the emerging middle class of India. Therefore, the market is set to grow here.
Why is Apple so eager for India?
1. Supply Chain Diversification: Apple wants to reduce dependence on China. Lockdown forced the company to think that it is not right to depend too much on an industry due to geopolitical stress, trade stress and Covid-19. Here, India is emerging as a low risk option for Apple.
2. Cost Benefits: India has a low cost workforce available in India, which makes it a cost -effective option. In addition, there is excessive import duty on electronics for domestic manufacturing company.
3. Government incentive: India’s production initiative (PLI) schemes and Make in India initiative provide financial assistance to businesses to promote local production. These efforts have inspired Apple partners like Foxconn and Tata to increase their investment in India.
4. Rising market demand: India is one of the fastest growing smartphone markets in the world. Local manufacturing helps Apple to fulfill this demand more effectively, as well as its market share, which is currently about 6–7%.
5. Export opportunity: Apple exports 70% of iPhone manufactured in India, which avails India’s low import duty compared to China. In 2024, iPhone was exported from India worth $ 12.8 billion (about ₹ 1,09,655 crore). It will increase further in the coming time.
6. Trained manpower and infrastructure: India’s manpower is behind China in terms of experience, but is moving fast. Apple manufacturers like Foxconn are training employees to meet the demands for production and are building plants such as Karnataka plant worth $ 2.7 billion (Rs 23,139 crore).
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