New Delhi: Apple is reportedly planning to move the entire assembly of iPhones meant for the US market to India as early as next year, marking a significant shift in its global production strategy, according to the Financial Times. The move aligns with Apple’s efforts to reduce its reliance on China amid ongoing geopolitical and trade tensions.
The final decision, however, is said to hinge on how swiftly India can expand its supply chain infrastructure and on the outcome of ongoing US-China trade negotiations.
The report notes that former US President Donald Trump had earlier urged Apple to diversify its manufacturing away from China due to rising trade frictions. As discussions on tariffs continue, Apple’s Indian contract manufacturers have already ramped up production to meet global demand.
Foxconn’s new manufacturing facility in Bengaluru is expected to begin operations this month, with a capacity to produce up to 20 million units annually at full scale. Tamil Nadu-based Foxconn alone accounts for nearly half of Apple’s export shipments from India, which saw a 40% surge over the same period last fiscal.
iPhone production in India has touched new highs, with devices worth $22 billion assembled over the past year. India now contributes nearly 20% of Apple’s total global iPhone output — a clear indicator of the country’s growing role in the company’s supply chain.
Apple is also witnessing strong domestic demand in India. Over 3 million iPhones were shipped from the country in Q1 2025, the highest quarterly figure to date. This rise is credited to consumer-focused initiatives like zero-interest EMIs, online discounts, and cashback offers.
Industry analysts project a 10-15% annual growth in Apple’s Indian business, both in manufacturing and local sales.
“With rising production and booming demand, India is fast emerging as a cornerstone of Apple’s global operations,” experts said.