In a significant shift in global manufacturing dynamics, Apple has announced plans to produce all its iPhones in India in the coming years. This strategic move underscores India’s growing prominence as a manufacturing hub and reflects the economic rationale behind such decisions.
Apple’s Strategic Shift to India
Union Telecom Minister Jyotiraditya Scindia revealed at the Bharat Telecom 2025 event that Apple intends to source and manufacture all its mobile phones in India. He emphasized that investing in India offers affordability, reliability, and originality for original equipment manufacturers (OEMs). Scindia highlighted that this decision is not merely an act of goodwill but a sound economic strategy for companies like Apple.
Apple CEO Tim Cook confirmed this direction during a recent earnings call, stating that the majority of iPhones sold in the U.S. in the June quarter would be produced in India. This shift aims to mitigate the impact of U.S. tariffs on Chinese exports and diversify Apple’s supply chain.
Economic Implications and Growth
The Indian government’s Production-Linked Incentive (PLI) scheme has played a pivotal role in attracting such investments. Scindia noted that an investment of ₹4,000 crore (approximately $500 million) has resulted in sales of ₹80,000 crore, ₹16,000 crore in exports, and the creation of 25,000 jobs. This showcases the substantial economic benefits of manufacturing in India.
Minister of State for Telecommunications Chandra Sekhar Pemmasani highlighted India’s transformation from a major importer of mobile phones in 2014 to a leading producer and exporter. In 2014, India produced 6 million mobile phones and imported 210 million units. By 2024, production surged to 330 million units, with exports reaching 50 million. Currently, 15% of global iPhone output originates from India, indicating a significant realignment in Apple’s supply chain.
Infrastructure and Connectivity Advancements
India’s rapid deployment of 5G infrastructure has further enhanced its appeal as a manufacturing destination. Scindia mentioned that within 22 months, 99% of India’s villages have been connected with 5G, deploying over 470,000 towers with an investment of nearly ₹4 lakh crore. This extensive connectivity supports the digital economy and facilitates efficient manufacturing operations.
Strategic Diversification Amid Global Tensions
Apple’s move to shift production to India is also a strategic response to geopolitical tensions and trade uncertainties. By diversifying its manufacturing base, Apple aims to reduce dependency on China and mitigate risks associated with tariffs and supply chain disruptions. This strategy aligns with the broader trend of companies seeking to establish more resilient and diversified supply chains.
Apple’s decision to manufacture all iPhones in India marks a significant milestone in the global tech industry. It reflects India’s emergence as a reliable and cost-effective manufacturing hub, driven by favorable government policies, infrastructure development, and a skilled workforce. This moves not only benefits Apple by diversifying its supply chain but also positions India as a central player in the global electronics manufacturing landscape.
