Apple has shifted a significant portion of its iPhone production to India, now accounting for 14% of global output and making India the largest manufacturing hub outside China. iPhone exports contribute nearly half of India’s $11.1 billion smartphone exports and supported $8 billion in Apple revenue for FY24 or 2% of global revenue for Apple in FY24.
Global suppliers are investing in India to support Apple’s Make-in-India push. Foxconn is building a $2.7 billion iPhone assembly plant near Bengaluru and a $0.6 billion facility in Hyderabad, while Corning Inc. plans a $120 million Gorilla Glass plant in Tamil Nadu, targeting mid-2025 production. Discussions are underway with Indian firms such as Murugappa Group, Titan and Dixon Technologies for camera module assembly and component manufacturing. According to Apple’s supplier list, 14 of 188 global partners now operate in India.
Apple’s expansion in India is expected to generate 600000 new jobs by 2027-28 including 200000 direct positions. The move also diversifies Apple’s supply chain and reduces reliance on China, highlighted by past disruptions such as Foxconn’s Zhengzhou halt in 2022. Growing 5G adoption, rising digital literacy and initiatives like Digital India are boosting demand for Apple products.
Nonetheless, Apple is also facing some challenges in deepening its India footprint. Partners such as Luxshare Precision remain tied to Chinese operations and the Luxshare Precision opting for a $330 million investment in Vietnam amid expansion hurdles. Cost-effective competition from OnePlus, Xiaomi, Oppo and Vivo keeps Apple’s market share below 7% in India. Moreover, India’s Production Linked Incentive (PLI) scheme aims for 35-40% value addition, which may require further policy support.
