Apple Inc. has made significant strides in increasing its iPhone production in India over the past year, with the company reportedly producing approximately $22 billion worth of iPhones from April 2024 to March 2025. This figure, as reported by Bloomberg News on April 13, 2025, reflects a remarkable 60% increase compared to the same period last year, bringing India's share of global iPhone production to about 20%.
According to the Indian Ministry of Technology, during this time frame, approximately 1.05 trillion rupees (around $25 billion) worth of iPhones manufactured in India were exported. This surge in production and export is largely attributed to the changes in trade policies initiated by the Trump administration, which announced mutual tariff impositions in February 2025. Following this announcement, the export of iPhones from India to the United States has seen a notable increase.
In response to the looming tariffs, Apple took proactive measures by mobilizing six freighters to urgently transport approximately 1.5 million iPhones, weighing around 600 tons, from India to the U.S. This strategy is part of Apple's broader plan to mitigate the financial impact of tariffs on its products. The company aims to increase the supply of iPhones produced in India for the U.S. market, especially as tariffs on Chinese products remain high.
The Trump administration's decision to exclude smartphones and computers from mutual tariff impositions on April 12, 2025, has further enhanced the competitive edge of iPhones produced in India. While the additional 125% mutual tariff imposed by the U.S. on China does not apply to iPhones made in China, a separate 20% tariff on Chinese products remains in effect. This exemption means that iPhones manufactured in India are now more price-competitive in the American market compared to their Chinese counterparts.
Despite these advancements, Apple continues to face challenges in reducing its reliance on Chinese production. The company has approximately 200 suppliers in China, making it difficult to shift production to other countries in the short term. Apple initially began producing older iPhone models in India back in 2017, but it has intensified its efforts to diversify production following significant disruptions during the COVID-19 pandemic.
Most of the iPhones produced in India are assembled at the Foxconn factory located in southern India, with Tata Electronics also serving as a major supplier. The company's strategy to expand its manufacturing footprint in India aligns with its long-term goal of mitigating risks associated with geopolitical tensions and supply chain vulnerabilities.
As Apple continues to navigate the complexities of international trade and production logistics, industry analysts are closely monitoring the company's moves. The ongoing trade dynamics between the U.S. and China, coupled with the evolving landscape of global production, will undoubtedly shape Apple's future strategies. The company's ability to adapt to these changes while maintaining its competitive edge will be crucial in the coming years.
In summary, Apple's significant increase in iPhone production in India exemplifies the company's strategic shift in response to external pressures, particularly the tariff landscape imposed by the Trump administration. As the company seeks to bolster its presence in the Indian market, it remains to be seen how these developments will impact its overall business model and supply chain operations.
