Apple to Make 25% of All iPhones in India: Report

Apple is significantly increasing its iPhone production in India. Within the next two to three years, Apple intends to manufacture 50 million iPhones in India, which will comprise approximately 25% of its total iPhone production, as reported by The Wall Street Journal.

Apple plans to continue escalating production, provided this plan is executed efficiently. While China is expected to remain the primary manufacturer of iPhones, India’s contribution is anticipated to grow steadily. According to reports, Apple and Foxconn's initial efforts in India have been successful, laying a solid foundation for an expanded supply chain in the country.

Global companies are beginning to reduce their over-reliance on China, opting to relocate parts of their supply chains to India or other Southeast Asian countries such as Vietnam. This shift away from China is accelerated by the geopolitical tensions between the U.S. and China, with the U.S. leveraging its diplomatic influence to restrict China's access to advanced technologies. Concurrently, relations between India and the U.S. are strengthening.

Foxconn is constructing a new facility in Karnataka, set to commence operations in April. Apple has selected India as the manufacturing site for its lower-end iPhones, scheduled for sale in 2025. Apple’s teams are collaborating with contractors to convert blueprints and prototypes into detailed manufacturing plans, a process previously exclusive to China but now also underway in India.

This expansion complements Foxconn’s existing facility near Chennai. The recent acquisition of Wistron’s facility by Tata suggests that Apple could potentially manufacture 50 to 60 million iPhones in India over the next 36 months.

Foxconn has announced plans to invest up to $1.5 billion in India. Total iPhone shipments currently stand at 220 million, according to Counterpoint Research. In India, Apple has been assembling iPhones worth approximately $7 billion, constituting 7% of its global production. However, India’s share is expected to continue its steady growth.

Apple has encountered several challenges in China, such as the government directing officials to refrain from using iPhones at work, stringent lockdowns during COVID-19 resulting in substantial weekly financial losses, and geopolitical challenges.

Remarkably, with the iPhone 15, India and the U.S. saw a simultaneous launch for the first time. Additionally, labor costs in Indian manufacturing facilities are lower than in China. Apple has also inaugurated its first retail stores in India, located in Mumbai and Delhi. The supply chain shift towards India is further evidenced by TDK, a Japanese company, agreeing to manufacture batteries for the iPhone 16 in India.

Bloomberg reports India's largest conglomerate, Tata, has proposed constructing a new factory in Hosur, Tamil Nadu, which could be operational in 18 months and employ a workforce of 50,000 within two years. Although this facility is smaller than some of Foxconn’s other plants, it is significantly larger than the recently acquired Wistron facility. Additionally, Tata may receive government subsidies for this project under the PLI scheme.