Apple Plans Major Expansion of iPhone Manufacturing in India

Technology giant Apple is preparing to significantly scale up iPhone production in India. Industry sources estimate that by the end of the 2025–26 financial year (FY26), Apple aims to manufacture iPhones worth approximately USD 40 billion (around ₹3.36 lakh crore) in India. This strategic shift comes amid escalating trade tensions with China and the imposition of tariffs by the United States, prompting Apple to diversify its global supply chain by moving a substantial portion of its production out of China. As part of this shift, India is being positioned as a critical manufacturing hub.

Through this major production increase, Apple reportedly intends to fulfill up to 80 percent of U.S. iPhone demand directly from India, while also catering fully to the rapidly expanding domestic Indian market.

Recently, Apple CEO Tim Cook made key remarks, stating that in the April–June quarter, the majority of iPhones sold in the United States will be manufactured in India. Cook noted that changes in Apple’s production strategies were necessitated by tariffs imposed by the U.S. government on imports.

While iPhone production is shifting to India, Apple is reportedly moving the manufacturing of other products such as iPads, MacBooks, Apple Watches, and AirPods to Vietnam. The company anticipates that U.S. tariffs will have an impact of approximately USD 900 million during the current quarter.

India’s electronics manufacturing sector has gained momentum under the government’s Production Linked Incentive (PLI) scheme, an opportunity Apple is leveraging. In the last financial year, India’s smartphone exports reached a record ₹2 lakh crore, with Apple accounting for nearly 70 percent of that value. Alongside its manufacturing expansion, Apple is also extending its retail operations in India. In addition to its two existing stores, the company has planned to launch several new outlets within this year.