Apple Deepens India Manufacturing Strategy Amid Rising U.S.-China Trade Friction
In a significant development highlighting Apple’s accelerating pivot to India, Taiwan-based Foxconn has officially commenced production of Apple AirPods from its Hyderabad factory for export markets, according to people familiar with the matter. This milestone comes as Apple positions India as a critical alternative manufacturing base to China in response to growing U.S.-China geopolitical and trade tensions. The move is further catalyzed by U.S. President Donald Trump’s imposition of tariffs exceeding 100% on key categories of Chinese goods, a policy shift that risks destabilizing Apple’s traditional supply chains while threatening product affordability in its largest market—the United States.
Highlights:
Foxconn has begun export production of Apple AirPods in Hyderabad.
U.S. tariffs exceeding 100% on Chinese goods are accelerating Apple’s India pivot.
India is being positioned as a strategic hedge against Chinese supply chain risks.
Bengaluru Mega Facility to Anchor iPhone Production; Trial Run for iPhone 17 Underway
Foxconn is preparing to launch full-scale operations at its new Bengaluru facility in Devanahalli, which will play a central role in Apple’s next phase of iPhone manufacturing expansion. The factory, expected to be Foxconn’s second-largest plant globally outside China, is being built with an estimated investment of $2.8 billion (₹25,000 crore). Initial operations are focused on preparing for volume manufacturing of the upcoming iPhone 17 series, which is currently under trial production. The plant is projected to reach a peak output capacity of 20 million iPhones per year, positioning it as a key export node for Apple’s future supply strategy.
Highlights:
Bengaluru plant to be Foxconn’s second-largest outside China with $2.8 billion investment.
Trial production of iPhone 17 series underway in India.
Peak capacity expected to reach 20 million iPhones annually.
Tata Electronics Expands Role, Begins Assembly at Hosur; Pegatron and Wistron Assets Integrated
Tata Electronics has begun assembling older-generation iPhones at its new manufacturing facility in Hosur, marking a substantial leap in its evolving role within Apple’s supply chain. With shipments set to begin shortly, the plant will be scaled up in the coming months. Tata’s strategic acquisition of Indian operations from Taiwanese firms Pegatron and Wistron has made it Apple’s second-largest supplier in India, after Foxconn. The rapid ramp-up of Tata’s manufacturing capabilities is part of Apple’s wider strategy to diversify and de-risk its supplier base amid geopolitical uncertainty.
Highlights:
Tata Electronics’ Hosur facility has begun iPhone assembly and will ship soon.
Acquired Pegatron and Wistron’s India operations to become Apple’s second-largest supplier.
Tata will play a key role in Apple’s broader India supply chain shift.
India to Manufacture Over 60 Million iPhones Annually by 2026, Meeting Entire U.S. Demand
Apple has set an ambitious target to shift the production of over 60 million iPhones annually to Indian factories by 2026, which would be sufficient to fulfill the entire demand from the U.S. market. This goal follows a record $2 billion worth of iPhones shipped from India to the U.S. in March 2025 alone, the highest monthly export figure ever for Apple from India. The majority of these shipments were handled by Foxconn, though Tata Electronics is expected to gain share progressively with its new capacity coming online.
Highlights:
Apple plans to produce 60 million iPhones annually in India by 2026.
March 2025 saw a record $2 billion in iPhone exports from India to the U.S.
Foxconn led March production, but Tata’s share is set to rise.
Apple’s Localization Strategy to Cut China Dependence Gains Global Backing
Analysts and global supply chain experts see Apple’s India-centric strategy as a critical move to mitigate over-reliance on Chinese manufacturing, especially with U.S. tariffs now reshaping trade flows. According to Navkendar Singh, associate vice president at IDC India, Apple’s investments in India reflect both economic logic and geopolitical necessity. “With higher U.S. tariffs on Chinese electronics, India offers both scalability and stability for Apple’s long-term manufacturing needs,” he said. Singh noted that scaling existing production lines in India is faster and more viable than establishing greenfield facilities elsewhere, reinforcing the country’s rising prominence in global electronics exports.
Highlights:
Analysts see India as a viable, scalable export base for Apple.
High U.S. tariffs on China make Indian production increasingly strategic.
IDC sees India as a dependable long-term manufacturing partner.
India’s Share in Global iPhone Output Expected to Rise to 30% in 2025
India currently manufactures 40–45 million iPhones annually, accounting for 18–20% of Apple’s global production in 2024, per IDC data. This figure includes both domestic and export volumes. Analysts project India’s share to rise to 25–30% by 2025, powered by capacity expansions at both Foxconn’s Bengaluru unit and Tata’s Hosur facility. With infrastructure, policy incentives under PLI schemes, and increasing workforce specialization, India is steadily evolving into one of Apple’s top-tier manufacturing hubs, especially for high-volume, high-value product lines.
Highlights:
India made up 18–20% of Apple’s global iPhone production in 2024.
Share likely to rise to 25–30% in 2025.
Expansion driven by Foxconn and Tata’s new facilities and government support.
