Apple Ramps Up iPhone Production in India as U.S. Demand Slows
In the first half of 2025, Apple made over 23.9 million iPhones in India, a record-breaking number that shows how fast the company is shifting gears. According to The Economic Times, this is a 53% increase from the same period last year. At the same time, iPhone sales in the United States have slowed down, pushing Apple to rethink where and how it makes its phones.
We’re seeing a big move. Apple is no longer relying mostly on China. It’s now betting big on India. Why? Because trade tensions, rising tariffs, and production risks in China are making companies like Apple look elsewhere. And India is stepping up.
As everyday users, we often don’t notice where our phones are made. But this shift matters. It’s not just about parts and labor. It’s about global economics, political strategy, and how brands stay ahead when markets change.
We’ll analyze how and why Apple is ramping up its production in India, what this means for the U.S. market, and how India is becoming more than just a backup; it’s turning into a tech manufacturing hub.
Let’s break it down.
Slowing U.S. Demand: A Market Shift
Worldwide smartphone sales grew by only 1% in the second quarter of 2025, while Apple’s performance in the U.S. showed little to no growth. Sales are flat or slightly down. As consumers hold onto phones longer, Apple is still strong, just not growing fast in the U.S.
India’s Manufacturing Boom
In the first half of 2025, Apple set a new record in India. It shipped over 23.9 million iPhones from there. Exports to the U.S. In April alone, exports rose by 76%, reaching about 3 million units. Currently, India accounts for close to 18% of the world’s iPhone production.
Key Reasons for the Shift
Trade Tensions & Tariffs
Trump warned Apple it could face 25% U.S. tariffs unless it makes iPhones in the U.S. U.S. tariffs on Chinese-made electronics surged past 100%. But those from India are only around 26%. That makes India cheaper to ship from.
Supply‑Chain Diversification
Apple began assembly of iPhone 17 series models in India. Foxconn, Tata, and Pegatron are expanding rapidly. This helps Apple avoid over‑reliance on China.
India’s Growing Capacity
Until 2024, India produced about 40–43 million iPhones. Official reports indicate that India plans to produce up to 80 million iPhones annually by the year 2026. But Apple still needs roughly 20 million phones per U.S. quarter. This means India will need to increase its production capacity by two times to reach that target.
Challenges in Indian Manufacturing
We still see growing pains. Infrastructure and logistics in India are under stress. Yield rates are lower than in China. Plus, India still relies on Chinese sub‑parts. Apple can’t tweak as fast in India yet.
Political & Geopolitical Factors
Former President Trump demands U.S. production and calls India a stop-gap. China, in response, has limited advanced tech exports to India. Apple CEO Tim Cook is now dealing more with global trade and political issues than focusing solely on technology decisions.
India’s Industrial Push
India is evolving fast. The PLI (Production Linked Incentive) scheme drove $200 billion in output and 1.2 million jobs. A new Rs229 billion ($2.8 billion) plan aims to boost sub‑parts manufacturing. States such as Tamil Nadu currently produce around 70–80% of the iPhones made in India. Infrastructure is improving, and training programs are underway.
Outlook Based on Current Trajectory
Analysts expect India to produce 60–65% of Apple’s iPhones by fall 2025Foxconn intends to increase its production to 80 million units by the year 2026. Apple aims for simultaneous global launches from Indian lines. But full shift away from China may take years.
Conclusion
We see a clear shift. U.S. demand softens. Tariffs and politics push Apple to India. India answers with record output and strong policies. Challenges remain, but momentum is real. As Apple leans more on India, it tells us a bigger story. It’s about new supply chains. It’s about shifting power. And it shows how our phones are not just gadgets; they are a map of global priorities.
FAQS:
Yes, Apple is making more iPhones in India. It wants to ship many of them to the U.S. Due to higher expenses and ongoing issues at factories in China.
India still has weak roads and power issues. Apple also gets many phone parts from China. Making phones in India is slower and not always of the same quality.
No, Apple is not doing that now. In the past, it slowed older phones to protect battery life. But now, Apple gives users more control through settings.
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This content is for informational purposes only and not financial advice. Always conduct your research.