India’s iPhone production stabilised at over ₹15,000 crore in May 2025, reflecting a robust and sustained manufacturing pace despite a slight dip from the March peak of ₹19,630 crore, which was driven by Apple’s efforts to front-load shipments to the US ahead of anticipated tariff deadlines. This May output remains well above the 2024 monthly average of ₹10,000–11,000 crore, underscoring India’s growing prominence in Apple’s global supply chain.

By the end of May, Apple’s Indian vendors had produced iPhones worth ₹84,000 crore this year, already matching the total domestic consumption for all of 2024. Industry experts forecast that the monthly production rate will maintain a steady ₹15,000 crore for the remainder of 2025, barring significant geopolitical disruptions. This steady rate is attributed to both rising domestic demand and Apple’s strategic push to use India as a major export hub, especially as the company seeks to diversify away from China amid ongoing US-China trade tensions.

Tata Electronics has significantly increased its share in iPhone production, now accounting for 35% of India’s output after acquiring Wistron’s Karnataka facility and a 60% stake in Pegatron’s Indian operations. Foxconn remains the dominant player with a 65% share, but Tata’s rapid expansion signals a shift in the competitive landscape among Apple’s Indian suppliers. Both companies have benefited from India’s production-linked incentive (PLI) scheme, which has bolstered local manufacturing capacity and attracted further investment.

The March production surge was largely a response to US President Donald Trump’s threats of imposing tariffs on India-made iPhones, prompting Apple to accelerate shipments to the US before the initial April deadline, which was later deferred to July. The uncertainty around future US-India and US-China trade negotiations continues to cast a shadow on long-term planning, with Trump recently urging Apple to manufacture in the US or face a 25% tariff. Analysts note that if Apple were to shift production to the US, iPhone prices could rise by at least 15–20% due to higher labour and operational costs.

Despite these uncertainties, Apple’s Indian manufacturing operations are expected to grow. Local shipments of iPhones are projected to rise by 15% in 2025, up from around 11 million units sold in 2024. Apple CEO Tim Cook has indicated that a significant portion of US iPhone demand will be met from Indian production by the end of this year. India’s share of global iPhone production is forecast to reach 20% in 2025, with ambitions to double output and potentially supply 32% of global iPhones by 2026–27.

India’s iPhone production has stabilised at a historically high level, driven by both domestic and export demand, supportive government policies, and Apple’s strategic realignment in response to global trade dynamics. The sector’s outlook remains positive, though subject to the evolving geopolitical landscape and the outcome of ongoing tariff negotiations.

Agencies