August 2025 | StartupPoint.in Exclusive
As new U.S. tariffs rattle global trade, Apple emerges as an unlikely winner—thanks to its strategic early bet on Indian manufacturing. The tech giant now produces up to 14% of global iPhones in India, insulating itself from the 25% U.S. tariff on Chinese imports that took effect this week.Apple’s strategic push into India is bearing fruit. Latest figures reveal that 14% of global iPhone production now comes from India, underscoring the country’s rise as a vital hub in Apple’s global supply chain. This milestone not only strengthens Apple’s manufacturing diversification away from China but also helps the tech giant navigate geopolitical risks, including rising U.S. tariffs on Chinese imports.
Over the last five years, Apple has steadily deepened its presence in India, encouraged by the government’s Production-Linked Incentive (PLI) scheme, improving infrastructure, and a growing ecosystem of suppliers and assembly partners. Companies like Foxconn, Pegatron, and Wistron (now part of Tata Group) have significantly ramped up local production, assembling top-end models such as the iPhone 14 and iPhone 15 directly in India.
By achieving double-digit global output from India, Apple gains multiple advantages. First, it mitigates risks from U.S.-China tensions, as Washington imposes higher tariffs on Chinese electronics. Devices manufactured in India help Apple dodge these tariffs, preserving margins in its largest market. Second, it positions India as not just a market but also a strategic export hub, with a large share of locally assembled iPhones shipped to Europe and other regions.
For India, Apple’s scaling up is equally significant. The company has contributed to a sharp rise in electronics exports, boosting the “Make in India” narrative. Exports of iPhones alone are projected to surpass $15 billion annually, making Apple one of India’s largest single product exporters. The presence of global suppliers is also catalyzing the domestic ecosystem, creating jobs, fostering skill development, and bringing advanced manufacturing capabilities to the country.
Beyond production, Apple is deepening its consumer footprint. With premium smartphone demand rising in India’s urban centers, the company has opened flagship stores in Mumbai and Delhi, strengthening its brand presence. Combined with aggressive financing schemes and trade-in offers, Apple is slowly expanding its market share in a price-sensitive country traditionally dominated by Android devices.
The long-term bet is clear: India will play a dual role for Apple as both a manufacturing powerhouse and a fast-growing consumer market. With production crossing 14% globally and U.S. tariff risks being sidestepped, Apple’s India strategy looks less like an experiment and more like the foundation of its next growth chapter.
📈 Key Takeaways
✔ India now makes 1 in 7 iPhones globally, up from just 1% in 2020
✔ Tariff-proof supply chain: Apple avoids new U.S. duties on Chinese electronics
✔ Massive expansion underway: Foxconn & Tata scaling up Tamil Nadu & Karnataka plants
✔ Export hub status: iPhones “Made in India” now shipped to U.S., Europe & Middle East
🔍 Why This Matters
- Timing was perfect: Apple began shifting from China years before tariffs
- Tripled production since 2022 under PLI scheme
- Now assembles iPhone 12 to iPhone 15 locally, including Pro models
🏭 The Manufacturing Surge
| Manufacturer | Location | Capacity (Millions/yr) |
|---|---|---|
| Foxconn | Tamil Nadu | 10+ |
| Tata-Wistron | Karnataka | 5 |
| Pegatron | Tamil Nadu | 3 |
(Source: Industry reports via StartupPoint Research)
💡 Strategic Win for India
✅ Jobs boom: 150,000+ direct jobs created
✅ Tech ecosystem boost: 3x growth in component suppliers
✅ Global credibility: Proves India can handle complex manufacturing
🌐 Bigger Picture
- Samsung, Google Pixel also expanding India ops
- $50B+ electronics exports targeted by 2030
- PLI scheme driving 28% production growth YoY
💬 Expert View
*”Apple’s foresight showcases how geopolitical hedging is now mandatory in tech. India’s rise as the next electronics epicenter just accelerated by 2-3 years.”*
— Supply Chain Analyst (via StartupPoint Insights)
📌 What’s Next?
🔹 iPhone 16 production likely to start simultaneously in India & China
🔹 More Apple suppliers (like Corning, Jabil) setting up local plants
🔹 Govt pushing for chipmaking & display fab investments
(Source: StartupPoint.in | MoS Electronics data, Bloomberg)
