Apple now makes about 25% of iPhones in India after China pivot

Core Insights - Apple has significantly increased its iPhone production in India, assembling approximately 55 million units in 2025, a 53% increase from 36 million in 2024, now accounting for about a quarter of its global production of 220 to 230 million iPhones annually [1][9]. Group 1: Production and Expansion - The expansion in India is supported by Prime Minister Narendra Modi's production-linked incentives, aimed at establishing India as a global manufacturing hub [2][9]. - Apple is currently assembling all versions of the iPhone 17 lineup in India, including high-end models, and its suppliers are also producing older models for local sales and exports [8][9]. - The rising output in India reflects Apple's long-term strategy to develop a second major manufacturing base to meet global demand [9]. Group 2: Market Dynamics and Challenges - Shipments from China faced challenges due to US tariffs, prompting Apple to shift a larger share of its production to India as an alternative manufacturing destination [4][9]. - Despite the growth, manufacturing costs in India remain higher than in China and Vietnam, leading companies like Apple to seek additional government support [6][7]. - Discussions are ongoing with the Indian government for new incentives to support export growth, as current production subsidies are set to expire on March 31 [7]. Group 3: Market Opportunities - Apple's sales in India have surpassed $9 billion, indicating a growing consumer market, and the company is preparing to launch Apple Pay in India later this year [9]. - The expansion of Apple's retail network in India, which now includes six stores, highlights the country's increasing importance as both a production hub and a consumer market [9].