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Apple to Double iPhone Production in India, Aiming to Supply Most US Sales by 2026

by Team Lumida
April 25, 2025
in Markets
Reading Time: 5 mins read
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Key Takeaways:

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  • Apple plans to import most of the iPhones it sells in the US from India by the end of 2026, accelerating its shift away from China due to tariffs and geopolitical tensions.
  • The company aims to double its annual iPhone output in India to over 80 million units, up from 40 million in the fiscal year ending March 2025.
  • India now accounts for 20% of Apple’s global iPhone production, with $22 billion worth of iPhones assembled in the country in the past fiscal year.
  • Apple’s India production is led by Foxconn, Tata Group, and Pegatron, with new plants and expanded capacity underway in southern India.
  • The Trump administration’s recent exemption of electronics, including smartphones, from reciprocal tariffs has further boosted Apple’s India exports to the US.

What Happened?

Apple is accelerating its shift away from China by ramping up iPhone production in India, aiming to supply most of its US sales from the South Asian country by the end of 2026. The company plans to double its annual iPhone output in India to over 80 million units, up from 40 million in the fiscal year ending March 2025.

India has become a key manufacturing hub for Apple, accounting for 20% of its global iPhone production. In the past fiscal year, Apple assembled $22 billion worth of iPhones in India, exporting $17.5 billion worth of devices.

The shift is driven by US tariffs on Chinese imports and geopolitical tensions between Washington and Beijing. The Trump administration’s recent exemption of electronics, including smartphones, from reciprocal tariffs has further incentivized Apple to prioritize India for its US supply chain.

Apple’s India production is led by Foxconn, Tata Group, and Pegatron, with new plants and expanded capacity being developed in southern India. The company now assembles its entire iPhone range in India, including premium models like the titanium Pro.


Why It Matters?

Apple’s move underscores the growing importance of India as a global manufacturing hub, supported by state subsidies tied to Prime Minister Narendra Modi’s “Make in India” initiative. The shift also highlights the impact of US-China trade tensions on global supply chains, as companies like Apple seek to diversify their production bases.

By doubling its India production, Apple not only mitigates tariff risks but also strengthens its position in the world’s most populous nation, which offers a growing consumer market and cost advantages. The exemption of electronics from US tariffs further enhances the viability of India as a key export base for Apple.

This strategic pivot could serve as a blueprint for other multinational companies looking to reduce their reliance on China amid rising geopolitical and economic uncertainties.


What’s Next?

Apple will continue to expand its manufacturing footprint in India, with Foxconn and Tata Group leading the charge in building new plants and increasing production capacity. The company’s ability to meet its ambitious production targets will depend on the successful execution of these plans and the continued support of Indian government subsidies.

The shift also positions Apple to navigate future trade uncertainties, as the Trump administration’s tariffs on China remain at 145%. By prioritizing India, Apple is better equipped to maintain its competitive edge in the US market while reducing its exposure to geopolitical risks.

For now, Apple’s India strategy signals a broader trend of supply chain diversification, with significant implications for the global tech and manufacturing industries.

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Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018