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Apple is currently making 50% iPhone sold in the US market in India.
US President Donald Trump has asked Apple’s CEO Tim Cook that there is no need to install factories in India. We are not interested in your construction in India, India can take care of itself.
Trump on Thursday informed about the conversation with Apple CEO in the program with business leaders in Doha, the capital of Qatar. He said that Apple will now increase production in America. According to Trump, Apple should build a factory in India only to target the Indian market.
At the same time, Trump also said in the program that India has offered us the zero tariff deal in trade. He said that India is ready to take any charge in trade from us.
50% iPhone sold in US market is being made in India
Apple’s CEO Tim Cook has recently told in an interview that 50% of iPhones sold in the US market are being made in India. Cook said that India will become the country of origin of iPhones sold in the US in the April-June quarter. He informed that other products like Airpods, Apple Watch are also being made mostly in Vietnam.
The company is giving priority to India and Vietnam due to lower tariffs than China. China has only 10% tax on imports from India and Vietnam than more tariffs in China.
6 crore+ iPhones will be made annually in the country by 2026
According to the Financial Times report, Apple has been working on shifting its supply chain out of there for a long time to reduce its dependence on China.
If Apple shifts its assembling to India by the end of this year, then from 2026, more than 6 crore iPhone will be produced here annually. This is double the current capacity.
China’s dominance on iPhone manufacturing
China is still dominated by the manufacturing of the iPhone. According to the IDC, it was about 28% in the company’s global iPhone shipment in 2024. Shifting the production of iPhone sold in the American market outside China will help the company to avoid high tariffs.
60% iPhone production increased from March-24 to March-25
In 12 months from March 2024 to March 2025, Apple created $ 22 billion (about ₹ 1.88 lakh crore) iPhone in India. It has increased by 60% compared to last year.
During this, Apple exported iPhone of $ 17.4 billion (about ₹ 1.49 lakh crore) from India. At the same time, one in every 5 iPhone worldwide is now being made in India. The manufacturing of the iPhone in India is done in the factories of Tamil Nadu and Karnataka.
Foxconn is the most produced in this. Foxconn is Apple’s largest manufacturing partner. Apart from this, Tata Electronics and Pagtron also manufacturing.
FY $ 8 billion iPhone sale in 2024
Apple’s smartphone sales reached $ 8 billion in FY 2024. While its share in the market was only 8%. The iPhone is still a luxury in the emerging middle class of India, so the market is expected to grow here.
Why Apple’s focus on India?
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems such as Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it is not right to depend more in one area. In this context, India is proving to be a low risk option for Apple.
- Cost Advantage: India provides labor at a lower cost than China, which makes it more attractive. In addition, manufacturing at local level helps the company to avoid high import costs on electronics.
- Government incentive: India’s Make in India Insiative and Production Linked Insiative (PLI) schemes provide financial assistance to companies to increase local manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs than China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Foxconn -like partners are training employees to meet the production needs and expand facilities like plants like $ 2.7 billion (₹ 23,139 crore) in Karnataka.
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Read this news too …
Foxconn is purchasing 300 acres of land in Uttar Pradesh: Manufacturing plant will be built near Yamuna Expressway, the company supplies Apple products
Foxconn, a company that assembles products like iPhone, iPad and Mac Book for Apple, is going to buy 300 acres of land in Greater Noida in Uttar Pradesh.
The company will build a manufacturing plant on this land near the Yamuna Expressway. This will be Foxconn’s first plant in North India and the manufacturing facility made in Bangalore will be large. Hopefully it can be the second largest plant in the world.
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