Explainer: iPhone production is increasing in India, then why does Apple need China?
Apple has become disillusioned with China, and the company wants to gradually pack up its belongings from China and make India the next stronghold of iPhone production. Turning away from China and producing iPhones in India is creating job opportunities in the country, which will benefit India in some way. According to media reports, China is still producing more than 75 percent of the iPhones sold globally but Apple aims to reduce its dependence on China.
About 18 percent of the iPhones sold in the global market are being produced in India but according to reports, the company is aiming to produce most of the iPhones sold in the US in India by 2026.
It will take 8 years to remove 10% from China.
Despite Apple's growing move towards India, China remains the center of Apple's supply chain. Some time ago, Apple CEO Tim Cook praised China's expertise in electronics manufacturing. In 2022, Bloomberg Intelligence estimated that if Apple switches even 10% of its production from China to another country, it could take Apple about eight years to do this work.
Donald Trump was not listened to
Despite US President Donald Trump's repeated attempts to convince and dissuade, Apple is still preferring India to produce iPhones. Till now, the question was always asked whether India will ever be able to become a global manufacturing hub for iPhones or not, but now the question is, how soon? Apple is gradually distancing itself from China for iPhone production, due to which India is becoming a major hub for big companies like Tata Electronics and Foxconn.
Apple gained momentum
To avoid Donald Trump's reciprocal tariff, Apple increased production in March, and in March, iPhones worth a total of Rs 19,630 crore were produced in India, which were later sent to the US. India has already matched the domestic iPhone production of 2024 by the end of May. According to The Economic Times, in May 2025, Apple vendors in India made iPhones worth more than Rs 15,000 crore.
The government's focus on increasing production in the country
iPhone production has got a boost thanks to the government's Production Linked Incentive (PLI) scheme. According to the Economic Times, between FY23 and FY25, Tata Electronics received Rs 2,068 crore under the PLI scheme while Foxconn received Rs 2,807 crore.
This move of the government reflects the intention to support big players. The Modi government has also allocated a subsidy of Rs 22,919 crore ($2.7 billion) for additional electronics component manufacturing to boost mobile phone production in India. Due to the government's PLI scheme and additional subsidies, Apple is now less likely to switch production from India to any other country.
This Taiwanese company will make so many iPhones every hour in India
Foxconn has long been Apple's manufacturing partner for iPhone production and Foxconn has the largest share in iPhone production in India. According to the Economic Times, Foxconn's share in the country's iPhone production in 2024 was 65 percent and the company's revenue has been 90 thousand crores.
On May 20, Foxconn announced a new investment of $1.5 billion in its Indian subsidiary through Singapore-based Yuzhan Technology India, reinforcing its commitment to expand operations in Tamil Nadu.
A few weeks ago on April 29, reports surfaced that Foxconn would start testing production at a new $2.6 billion plant in Bengaluru, producing up to 500 units of iPhone 16 and 16e units per hour. After being fully operational by the end of 2027, more than 50 thousand employees will work in this plant of the company.
Tata also has long-term planning.
While Foxconn's strategy is to focus on scale and speed, on the other hand, Tata Electronics is also making strong plans to play a long innings in India. After acquiring Wistron's Karnataka factory in 2023, Tata has focused on continuous expansion.
Tata will have a 35 percent stake
According to the Economic Times report, by 2025, Tata Company will have 35 percent share of India's iPhone production, which was 30 percent in 2024 with an income of about 48 thousand crores. In January 2025, Tata took another big step by acquiring 60 percent stake in Pegatron's India unit near Chennai. The company currently has two iPhone production factories in Tamil Nadu and one in Karnataka.
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