Apple CEO Tim Cook recently made a significant statement in an interview, asserting that most iPhones sold in the United States will be "Made in India" in the coming years.
Technology: Apple is shifting its production hub to India, positioning the country as a crucial global center for iPhone manufacturing. CEO Tim Cook's recent statement clarifies that a majority of iPhones sold in the US will be manufactured in India in the future.
This move aims to reduce reliance on China, with India now becoming not just a major market but also a vital production hub for Apple.
Reducing Dependence on China
The reasons for decreasing reliance on China include trade wars, high taxes, and global uncertainties like the COVID-19 pandemic. Apple was compelled to seek alternative manufacturing locations to address these challenges. India and Vietnam have benefited most from this strategy. India offers lower import taxes, and the government's 'Make in India' initiative has attracted foreign companies. Furthermore, labor costs in India are significantly lower than in China, making it an attractive manufacturing destination.
Growing iPhone Manufacturing in India
Apple's iPhone manufacturing in India is consistently growing. Between March 2024 and March 2025, iPhones worth approximately $22 billion (approximately ₹1.88 lakh crore) were manufactured in India, representing a 60% increase compared to the previous year. This clearly demonstrates the increasing success of India's iPhone manufacturing sector. Production is accelerating rapidly, and further increases are anticipated in the future.
Tamil Nadu and Karnataka Emerge as New Manufacturing Hubs
The primary iPhone assembly in India takes place in Tamil Nadu and Karnataka. Major companies like Foxconn, Pegatron, and Tata Electronics are manufacturing smartphones for Apple in factories located in these states. Foxconn, Apple's largest manufacturing partner, has invested approximately ₹23,000 crore in a new plant in Karnataka. This plant is providing employment for thousands, who are receiving training to participate in the production process.
According to a Financial Times report, if the current rate of iPhone production in India continues, over 60 million iPhones could be manufactured annually by 2026. This would be double the current production capacity. This growth will not only establish India as a major production center but also help Apple strengthen its iPhone supply chain globally.
Increasing iPhone Exports from India
In 2024, India exported $17.4 billion (approximately ₹1.49 lakh crore) worth of iPhones. This signifies significant growth for India, as approximately 70% of iPhones manufactured in the country are now sold internationally. Exporting from India is cheaper than from China due to lower tax rates, helping Apple reduce its production and export costs.
While Apple's market share in India is currently only 8%, the growing middle class and increasing demand for premium smartphones could boost this significantly in the coming years. Cook's statement indicates that Apple now views India not just as a customer, but as a partner. India's policies, low costs, and skilled workforce have made it a leading center for global iPhone production.
