Apple Inc (NASDAQ:AAPL) is rapidly expanding its footprint in India, boosting iPhone production, exploring local chip partnerships, and preparing to launch Apple Pay in one of the world’s fastest-growing technology markets.
iPhone Production In India Surges
According to Bloomberg, Apple increased iPhone production in India by about 53% last year and assembled around 55 million devices in 2025. That’s up from 36 million in 2024,
The company now produces roughly one-quarter of its iPhones in India. The goal is to reduce reliance on China and avoid U.S. tariffs tied to trade disputes between the two countries.
Globally, Apple manufactures about 220-230 million iPhones each year; India’s share is rising quickly.
China still produces most iPhones. However, tariffs on shipments from China in 2025 pushed Apple and its suppliers to seek other locations. India became a key alternative.
Apple currently assembles all models of its latest iPhone 17 lineup in India, including the Pro and Pro Max versions. At the same time, suppliers such as Foxconn Technology Group, Tata Electronics, and Pegatron Corp also manufacture earlier models, such as the iPhone 15 and iPhone 16, for domestic sales and exports.
The company is also expanding local supplier partnerships in India to produce components such as lithium-ion cells, device enclosures, and accessories, including AirPods.
Expanding Semiconductor And Supply Chain Plans
Apple is expanding its India strategy to strengthen its supply chain amid trade and tariff pressures.
The company has started preliminary talks with Indian chipmakers to assemble and package iPhone components. This could bring local vendors deeper into Apple’s supply chain.
CG Semi, owned by the Murugappa Group, participated in early discussions. The company is building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.
Wedbush analyst Dan Ives said a potential U.S.–India trade deal could significantly strengthen Apple’s supply chain.
He noted that India is emerging as a serious challenger to China in tech manufacturing due to its engineering talent, growing supply chain infrastructure, and large technology workforce.
Ives said Apple has already moved more than 50% of iPhone production to India and called the shift one of CEO Tim Cook’s smartest recent decisions.
He also argued that manufacturing iPhones in the U.S. is not economically viable, estimating that U.S.-made devices could cost around $3,500 and that relocating production would take five to ten years.
Apple Pay Could Boost Demand In India
Apple has also held talks with ICICI Bank, HDFC Bank, and Axis Bank about launching Apple Pay in India. The Cupertino, California-based company has also approached Mastercard (NYSE:MA) and Visa Inc (NYSE:V).
Apple Pay would likely support India’s state-backed Unified Payments Interface, which customers already use to pay bills and transfer money instantly.
If launched, the service would join digital payment platforms from U.S. companies such as Walmart Inc (NYSE:WMT), Amazon.com Inc (NASDAQ:AMZN), and Alphabet Inc’s (NASDAQ:GOOGL) Google Pay.
India’s population of more than 1.4 billion people makes the country a major growth opportunity for Apple, as rising incomes could increase demand for products like the iPhone.
The company currently holds about 10% of the smartphone market in India and recently opened its sixth store in Mumbai.
AAPL Price Action: Apple shares were down 0.40% at $258.83 during premarket trading on Tuesday, according to Benzinga Pro data.
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