India Dials Up Success: Apple’s $22 Billion iPhone Shift Sparks Global Buzz

Apple Inc. has marked a stunning achievement, manufacturing $22 billion in iPhones in India in the last year—a 60% jump in production that marks a strategic shift away from China. This shift has made India a pivotal player in Apple's worldwide supply chain, now responsible for 20% of the company's iPhone production. The shift occurs as tensions rise in geopolitics, Chinese labor costs increase, and new U.S. tariffs are levied.

India's Production Linked Incentive (PLI) program has been the driving force behind Apple and its manufacturers, such as Foxconn and Tata Electronics, expanding operations. Foxconn will establish a huge Bengaluru campus, and Tata has bought Pegatron's Tamil Nadu factory, increasing India's manufacturing capabilities even further. The country's iPhone exports have also reached $17.4 billion in FY2024-25 due to U.S. demand.

This shift not only diversifies Apple's manufacturing bases but also solidifies India's position as a world leader in electronics manufacturing. With the intention to go further into wearables and accessories, India stands to become a vital component of Apple's future plans.

Sources: Bloomberg, Economic Times, India Briefing