Apple is making a major shift in its manufacturing strategy by expanding iPhone production in India. This move comes in response to rising U.S. tariffs on Chinese imports and ongoing supply chain disruptions. According to CEO Tim Cook, over half of Apple’s U.S. iPhone sales in the current quarter now come from units made in India.
Historically, India played a minor role in Apple’s global manufacturing. It mostly handled production for lower-cost devices or domestic sales. But now, the country is becoming a core part of Apple’s export strategy. Cook emphasized this change during a May 1 CNBC interview, pointing to the growing volume of iPhones reaching the U.S. market from Indian factories.
Boosting Output with New Partnerships
Foxconn, Apple’s largest supplier, plans to more than double iPhone production in India by the end of 2025—ramping up from 12 million units in 2024 to up to 30 million units. Tata Electronics is also expanding operations, supporting output of older iPhone models.
This increase in Indian production aligns with Apple’s efforts to reduce dependency on China, especially as tariffs on Chinese goods now reach up to 145%. Additionally, the COVID-19 pandemic exposed weaknesses in relying solely on China’s supply chain, prompting the company to diversify.
Improved Earnings and Consumer Benefits
Apple’s fiscal Q2 2025 earnings report showed a 5% year-over-year increase in revenue, reaching $95.4 billion. Earnings per share rose by 8%, and services revenue hit a record high. Much of this success is tied to the launch of the iPhone 16e, a budget-friendly model aimed at global consumers.
Chief Financial Officer Kevan Parekh credited customer loyalty and strong device usage as key drivers behind the results. He also noted that Apple returned $29 billion to shareholders in dividends and stock buybacks.
Looking Ahead
Apple’s India expansion may face hurdles. Regulatory challenges for suppliers with Chinese ties and differences in labor laws could slow progress. However, Apple remains committed. The company also cites environmental goals, stating that new factories in India run on renewable energy, helping reduce its carbon footprint.
If Apple meets its goal to shift most U.S.-bound iPhone production to India by 2026, it could mark one of the company’s biggest strategic shifts in years—potentially leading to steadier pricing and fewer delays for customers.
