One in Five iPhones Made in India: $22 Billion Worth of Phones Produced in a Year, 60% Increase in Production

Between March 2024 and March 2025, Apple produced iPhones worth $22 billion (approximately ₹1.88 lakh crore) in India, marking a 60% increase compared to the previous year.

During this period, Apple exported iPhones valued at $17.4 billion (approximately ₹1.49 lakh crore) from India. Notably, one in every five iPhones worldwide is now made in India, as reported by Bloomberg.

The production of iPhones in India takes place in factories in Tamil Nadu and Karnataka, with Foxconn being the largest manufacturer. Foxconn is also Apple’s primary production partner. Other companies, including Tata Electronics and Pegatron, are contributing to the growth in production.

iPhone Sales in Fiscal Year 2024 to Reach $8 Billion

In fiscal year 2024, Apple’s smartphone sales in India reached $8 billion, though its market share remained at just 8%. Despite this, iPhones continue to be viewed as a luxury item among India’s growing middle class, indicating potential for market expansion.

Why is Apple Focusing on India?

1. Supply Chain Diversification: Apple is looking to reduce its dependency on China. Geopolitical tensions, trade disputes, and issues like the COVID-19 lockdown highlighted the risks of over-relying on one region. In this context, India has emerged as a lower-risk alternative.

2. Cost Advantage: India offers labor costs lower than China, making it an economically attractive option. Additionally, producing locally helps Apple avoid high import duties on electronics.

3. Government Incentives: India’s “Make in India” initiative and Production-Linked Incentive (PLI) schemes provide financial support to boost local manufacturing. These policies have encouraged Apple’s partners, such as Foxconn and Tata, to increase their investments in India.

4. Growing Market Potential: India is one of the fastest-growing smartphone markets in the world. Local production enables Apple to meet demand more efficiently and grow its market share, which currently stands at around 6-7%.

5. Export Opportunities: Apple exports 70% of the iPhones it manufactures in India, taking advantage of the country’s lower import tariffs compared to China. In 2024, exports of iPhones from India reached $12.8 billion (approximately ₹1.09 lakh crore), and this figure is expected to grow further.

6. Skilled Workforce and Infrastructure: Although India’s labor force is less experienced than China’s, significant improvements are being made. Apple’s partners, such as Foxconn, are training workers and expanding facilities, like the $2.7 billion (₹23,139 crore) plant in Karnataka, to meet production demands.