iPhones Get an Indian Accent: Apple to Ramp Up Local Output by 10%

Image Source: The Economic Times

Apple Inc. is accelerating its shift toward India as a global manufacturing hub, announcing plans to increase iPhone production in the country by around 10% this year. This strategic move underscores Apple’s commitment to diversifying its supply chain and reducing dependence on China amid ongoing geopolitical and trade tensions.

Key Highlights:

Apple has already achieved a record $22 billion in iPhone production in India for FY2025, marking a 60% year-on-year surge and accounting for 20% of global iPhone output.
The latest expansion will see Apple ramp up production of its premium iPhone 16 Pro and Pro Max models in India for the first time, with Foxconn, Tata Group, and Pegatron as key manufacturing partners.
India’s share of global iPhone production is projected to rise from the current 10% to as much as 25% by next year, positioning the country as a critical base for Apple’s future growth.
The majority of India-made iPhones are exported to major markets including the US, Europe, and West Asia, with exports valued at approximately $17.4 billion in FY2025.
Apple’s manufacturing push is supported by Indian government incentives and the “Make in India” initiative, with $2.7 billion in new subsidies aimed at boosting electronics and component manufacturing.
The move is expected to create thousands of new jobs, enhance India’s role in Apple’s global supply chain, and potentially lower manufacturing costs by up to 10%.

While local production may not immediately translate into lower retail prices for Indian consumers due to high component costs and taxes, it significantly strengthens India’s position in the global smartphone export market.

Source: Times of India