INVC NEWS NEW DELHI – In a game-changing move that is set to reshape the global smartphone manufacturing landscape, Apple Inc. has officially commenced the production of its flagship iPhones at a new facility in South India. This decision not only signals a decisive shift away from Apple’s traditional reliance on China but also underscores the company’s efforts to diversify its supply chain amid the escalating trade tensions between the United States and China.
The move to ramp up production in India is seen as part of Apple’s broader strategy to future-proof its operations in the face of increasing geopolitical risks and trade wars. With a rapidly expanding economy, a skilled workforce, and a growing domestic market for tech products, India has become a key player in Apple’s manufacturing expansion. And as Apple increasingly looks to reduce its dependence on Chinese factories, India is emerging as a crucial hub for iPhone production—a decision that could shake up the balance of power in global tech manufacturing.
Apple’s Strategic Shift: Mitigating Risk Amid Rising US-China Tensions
The decision to begin manufacturing in India comes in the wake of rising tensions between the US and China, particularly under the Trump administration’s tariff policies. As Apple relies heavily on Chinese factories for iPhone production, the imposition of tariffs—some exceeding 100%—has raised concerns about future price hikes and supply chain disruptions. While the tech giant has so far avoided the brunt of these tariffs, the uncertainty surrounding potential changes in trade policies has prompted Apple to look for alternatives.
With the global landscape in flux, India offers Apple an opportunity to diversify its manufacturing base, ensuring a more resilient supply chain that can weather the uncertainties of global politics. The Made in India iPhones are not just a local solution, but a global strategy designed to safeguard the future of Apple’s operations in one of the most crucial markets for its products.
Two Major Plants: The Heart of Apple’s Production Surge in India
Apple’s decision to set up manufacturing facilities in Tamil Nadu and Karnataka marks a milestone in the company’s expansion into India. These two plants will play a pivotal role in the production of iPhones for both the domestic and international markets.
Tamil Nadu: In collaboration with Tata Electronics, Apple has opened a state-of-the-art plant where older iPhone models are currently being assembled. This facility represents the first major step in Apple’s move to India and is expected to scale up in the coming years as Apple increases its production capacity in the country.
Karnataka: In Bengaluru, a $2.6 billion facility operated by Foxconn, Apple’s long-time manufacturing partner, is expected to become one of the most significant production plants for the company. Initially focusing on the iPhone 16 and 16e models, this plant will create an estimated 50,000 jobs by the time construction is completed by December 2027. This project represents a substantial investment in India’s manufacturing sector, with the potential to significantly expand India’s role in Apple’s global production ecosystem.
India’s Role in the Global Supply Chain: A Rapid Expansion
India’s rise as a tech manufacturing powerhouse is no longer just a possibility—it’s happening now. According to Counterpoint Research, India’s contribution to global iPhone production has surged to 18%, up from just a fraction of Apple’s overall manufacturing capacity just a few years ago. By the end of 2026, Apple plans to manufacture the majority of its iPhones sold in the US in India, signaling a major shift in global supply chains.
In March 2025, a record-breaking 600 tonnes of iPhones (worth approximately ₹16,900 crores) were exported from India to the United States. This record-breaking achievement highlights the success of India’s growing tech manufacturing ecosystem and the increasing reliance Apple is placing on the country’s skilled labor force and advanced production capabilities. A significant portion of this record export was facilitated by Foxconn, which shipped ₹10,987 crores worth of iPhones alone.
Job Creation and Economic Growth: India Reaps the Benefits
As Apple continues to expand its manufacturing footprint in India, the impact on the Indian economy is already being felt. The establishment of new production facilities is not just about iPhones—it’s about the job creation, technological innovation, and economic growth that comes with it. The Foxconn plant alone is expected to create 50,000 jobs by 2027, with countless more positions likely to be generated across the supply chain.
Furthermore, Apple’s presence in India will bolster the country’s position as a hub for electronics manufacturing, attracting other global tech giants looking to capitalize on India’s growing expertise in the sector. This influx of foreign investment and knowledge will not only enhance India’s standing in global tech but will also drive the development of local industries and manufacturing excellence.
A Long-Term Commitment to India’s Future
Apple’s move to increase its iPhone production in India isn’t just about short-term manufacturing efficiency—it’s about positioning the company for long-term success in a world that’s becoming increasingly unpredictable. As Apple reduces its dependence on China, India has emerged as the key player in its global supply chain, providing Apple with a more stable and flexible manufacturing base.
In the coming years, we can expect India’s share of global iPhone production to increase significantly, with more models and greater volumes of iPhones being manufactured locally. Apple’s success in India will also encourage more companies to follow suit, further strengthening the country’s position as a global manufacturing hub.
Apple and India: A Symbiotic Future
Apple’s move to India is not only a win for the company but for India as well. By tapping into India’s growing manufacturing ecosystem, Apple is helping to foster a new era of innovation and technological advancement in the country. As Apple continues to expand its production capabilities, the long-term effects will be felt in India’s economy, job market, and global technological standing.
With iPhones made in India now heading to markets worldwide, India’s role in the global supply chain is set to become more important than ever. Apple’s decision to invest heavily in the country is a win-win that will ensure the company remains competitive in the fast-changing smartphone market while bolstering India’s place in the global tech landscape.
The Tension with China: A New Chapter in Global Manufacturing
As Apple shifts more of its production to India, it’s clear that the balance of power in global tech manufacturing is shifting. With China’s dominance in the tech supply chain now being challenged by India’s rise, the global manufacturing landscape is being reshaped in real-time. Apple’s strategic pivot toward India is just the beginning—other tech giants are likely to follow suit, signaling a new era of manufacturing diversification in an increasingly unpredictable world.
For China, this shift represents a significant challenge to its long-standing dominance in the global tech supply chain. As Apple diversifies its production base, the impact on China’s tech economy will likely be felt in the coming years, with more companies exploring alternative manufacturing hubs in countries like India, Vietnam, and others.
