TLDRs:
- Apple produced over ₹15,000 crore worth of iPhones in India in May, slightly down from earlier highs but well above 2024 averages.
- Tata Electronics now manufactures 35% of India’s iPhones, up from 30% last year, gaining ground on Foxconn.
- Geopolitical tensions, including possible US tariffs, cast uncertainty on future production strategies.
- Apple is expected to fulfill most US iPhone demand from India by the end of 2025, despite operational and supply chain hurdles.
Apple’s iPhone manufacturing operations in India remained resilient in May 2025, producing smartphones worth over ₹15,000 crore (approximately $175.48).
While this marked a marginal dip from the record pace in earlier months, the figure still outpaced the average monthly production levels seen throughout 2024. The data underscores Apple’s ongoing strategic pivot toward India as a central hub for both domestic sales and global exports.
As of May, Apple’s suppliers in India have manufactured devices worth ₹84,000 crore this year. That number already matches the projected total domestic consumption for all of 2024, illustrating the aggressive scaling of production in the region. Industry analysts say this trend will likely continue, with monthly output expected to average around ₹15,000 crore for the rest of the year, barring any significant disruptions from geopolitical developments.
India Strengthens Its Role in Apple’s Global Supply Chain
India’s ascent as a key production center for Apple is being driven by both opportunity and necessity. With ongoing geopolitical tensions and tariff threats from the US, Apple is reshaping its global manufacturing footprint. In March, the company saw a production surge worth nearly ₹19,630 crore as it rushed shipments ahead of looming tariffs. Though those duties have now been deferred to July, the production momentum has largely held steady.
Tata Electronics has emerged as a crucial partner in Apple’s India plans, now accounting for 35 percent of local iPhone output. This is a notable rise from its 2024 share, reflecting its expanding role since acquiring Wistron’s facility in Karnataka and purchasing a majority stake in Pegatron’s local operations. Foxconn still leads with a 65 percent share, but Tata’s rapid ascent signals a diversifying supply chain landscape within India.
Tariff Tensions Loom Over Future Production Plans
Despite its gains, Apple’s India strategy is not without challenges. US President Donald Trump’s call for Apple to manufacture domestically or face steep tariffs adds a layer of uncertainty. Industry experts warn that if Apple were to shift production to the US, iPhone prices could rise by 15 to 20 percent due to higher labor and logistical costs. That reality makes India a more viable option for sustaining margins, even if current operations there are still maturing.
While Indian facilities focus mostly on final assembly, core components continue to be imported from China. This keeps the supply chain vulnerable, and the pace of capability development in India remains slower than China’s rapid ramp-up during its industrial boom. Some analysts suggest it could take up to a decade before India’s ecosystem rivals China’s in terms of efficiency and completeness.
Apple’s Long-Term Bet on India
Nevertheless, Apple’s commitment to India appears firm. CEO Tim Cook confirmed last month that a majority of iPhones sold in the US would soon originate from Indian factories. Local sales are also expected to rise by at least 15 percent in 2025, reflecting both growing domestic demand and increasing consumer confidence in India-made iPhones.
That said, production facilities continue to expand, with Foxconn launching phased operations at a new Bengaluru plant and Tata building an additional unit in Hosur. With strong government support through the Production Linked Incentive scheme and increasing export demand, India is poised to capture an even larger share of Apple’s global manufacturing pipeline.
