Apple, Foxconn Boost iPhone Output in India as US Tariffs Reshape Supply Chains

India is emerging as a preferred hub for electronics manufacturing, with Apple scaling up iPhone production to 25–30 million units by 2025, driven by rising exports. Taiwanese electronics giant Foxconn is also set to begin operations at its new Bengaluru facility amid US tariffs and global supply chain realignment.

US electronics giant Apple Inc. has recorded a notable surge in its iPhone exports from India, nearly doubling in March 2025 to INR 200 billion (US$2.22 billion), up from INR 110 billion (US$1.28 billion) in the same month in 2024. As per news reports, a substantial portion of these exports was directed to the US in anticipation of tariffs announced by US President Donald Trump on April 2, 2025. According to preliminary data, total iPhone exports from India rose sharply to INR 1.5 trillion (US$17.48 billion) in FY2024-25, up from INR 850 billion (US$9.9 billion) in FY2023-24.

The fourth quarter of FY2024-25 (January to March 2025) also saw a notable rise, with exports hitting INR 480 billion (US$5.59 billion) compared to INR 285 billion (US$3.22 billion) during the same quarter of FY2023-24.

Influence of US tariffs and Apple’s strategic shift in manufacturing operations

Apple’s 2025 export trajectory is said to be influenced by recent geopolitical developments, particularly the imposition of tariffs by the US. Post the announcement, Indian-manufactured iPhones are now subject to a 26 percent tariff, while those produced in China will face a higher rate of 54 percent. According to industry analysts, companies across the globe are expected to exercise caution and avoid abrupt supply chain changes in the immediate future, with evaluations likely to continue over the next six to eight weeks.

It should be noted that before the new tariffs were announced, a gradual shift in manufacturing operations from China to India had already been initiated by Apple. This move is being seen as part of a broader strategy for mitigating risks that might arise from global trade disruption. The Production Linked Incentive (PLI) scheme of India, which played a key role in encouraging foreign investments in manufacturing, is expected to further boost the country as an ideal hub for electronics.

As part of efforts for localizing production, discussions have reportedly been held by Apple with Indian companies, including Bharat Forge from the Kalyani Group, for the manufacturing of mechanical parts for iPhones. These developments are being considered a part of Apple’s wider initiative to strengthen and expand its supplier network within India, further reinforcing the country’s role in global manufacturing.

READ: Apple’s Contract Manufacturers and Component Suppliers in India

Apple Inc. strengthening local partnerships and capacity

Apple’s suppliers have also ramped up their presence in India. On November 18, 2024, Pegatron, India’s second-largest iPhone assembler after Foxconn, entered into a joint venture with Tata Electronics. Additionally, the Motherson Group, based in Noida, Uttar Pradesh, has also joined the effort to boost local manufacturing capabilities.

While Apple Inc. plans to more than double its iPhone production in India, Foxconn is targeting an output of 25–30 million units in 2025.

Foxconn’s expanding operations in India

Foxconn, Apple’s largest contract manufacturer, has exponentially scaled its operations in India. Reports state the company has been conducting trial runs at its new 300-acre manufacturing facility in Bengaluru, Karnataka, and is expected to commence full-scale production in 2025. This facility will become Foxconn’s second-largest plant globally, after its primary hub in China.

Foxconn’s existing Indian facilities—including the iPhone assembly plant in Sriperumbudur near Chennai and a new AirPods production unit in Hyderabad—are part of Apple’s broader multi-location strategy. This geographic diversification aims to spread operational risk while boosting output.

The Bengaluru facility is expected to play a central role in achieving Apple’s 2024 target of exporting 25–30 million iPhones from India. Once trial runs meet Apple’s rigorous quality standards, the plant will move into full “revenue build” mode, marking the beginning of mass production and global shipments.

India’s rising role in global iPhone production

Research analysts note that India’s share in global iPhone production has climbed from 12–16 percent in 2023 to 21–25 percent in 2024. In January 2025, reports indicated that Apple achieved a major milestone in 2024, with iPhone exports from India hitting a record US$12.8 billion (INR 1.08 trillion), marking a 42 percent year-on-year increase. This surge, based on preliminary data from media sources, is largely credited to a notable rise in local value addition, which now ranges from 15 to 20 percent, depending on the iPhone model.

Foxconn’s rapid expansion also reflects Apple’s growing confidence in the Indian manufacturing ecosystem. There are reports that the company may soon diversify its production in India to include other product categories such as wearables and accessories.

Future outlook

India offers several advantages as a manufacturing hub for global manufacturing companies. This includes a large, youthful workforce, a growing domestic market, and a central-government-led scheme. Improvements in logistics, digital infrastructure, and the development of industrial zones have further increased India’s appeal to global manufacturers.

As Apple and its partners deepen their footprint in India, India is poised to become a major player in global electronics manufacturing, shifting not only trade patterns but also influencing global labor markets and investment strategies.

(US$1 = INR 85.77)

• Previous Article US Hikes Tariff on Indian Imports to 26%: All You Need to Know
• Next Article