Despite India's Growing iPhone Production, Why Does Apple Still Rely on China?

Tech News: In the coming days, Apple aims to gradually shift its business away from China and make India the next stronghold of iPhone production. Turning away from China and producing iPhones in India is creating job opportunities in the country, which will benefit India in some way. According to media reports, China is still manufacturing over 75 per cent of the iPhones sold worldwide, but Apple aims to reduce its dependence on China. About 18 per cent of the iPhones sold in the global market are being produced in India, but if reports are to be believed, the company is targeting to manufacture most of the iPhonesold in the America in India by next year.

8 Years to Shift 10% of Production from China

Despite Apple's growing move towards India, China remains the centre of Apple's supply chain. Some time ago, Apple CEO Tim Cook praised China's expertise in electronics manufacturing. In 2022, Bloomberg Intelligence estimated that if Apple switches even 10% of its production from China to another country, it could take Apple about eight years to do this work.

Trump's Plea Falls Flat

Despite the repeated attempts of US President Donald Trump to convince and dissuade him, Apple is still choosing India for iPhone production. Till now, the question has always been asked whether India will ever be able to become a global manufacturing hub for iPhones or not, but now the question is how soon? Apple is slowly distancing itself from China for iPhone production, due to which India is becoming a major hub for big companies like Tata Electronics and Foxconn.

Apple picks up pace

To avoid Donald Trump's reciprocal tariffs, Apple increased production in March, and in March, a total of Rs 19,630 crore worth of iPhones were produced in India, which were later shipped to the US. India has already matched domestic iPhone production in 2024 by the end of May. According to media reports, in May 2025, Apple vendors in India have manufactured iPhones worth more than Rs 15,000 crore.

Government's Production Push in the Country

The government's Production Linked Incentive (PLI) scheme has given a boost to iPhone production. According to media reports, between FY23 and FY25, Tata Electronics received Rs 2,068 crore under the PLI scheme, while Foxconn received Rs 2,807 crore.

This move of the government reflects the intention to support big players. The Modi government has also allocated a subsidy of Rs 22,919 crore ($2.7 billion) for additional electronics component manufacturing to boost mobile phone production in India. Due to the government's PLI scheme and additional subsidy, Apple is now less likely to switch production from India to any other country.

Foxconn will make this many iPhones every hour in India

Taiwanese firm Foxconn has long been Apple's manufacturing partner for iPhone production, and Foxconn has the largest share in iPhone production in India. According to media reports, Foxconn's share in the country's iPhone production in 2024 was 65 per cent, and the company's revenue was 90 thousand crores.

On 20 May, Foxconn announced a investment of 1.5 billion dollars in its Indian subsidiary through Singapore-based Yuzhan Technology India, reinforcing its commitment to expand operations in Tamil Nadu.

A few weeks ago, on 29 April, reports surfaced that Foxconn would start testing production at a new USD 2.6 billion plant in Bengaluru, producing up to 500 units of iPhone 16 and 16e units per hour. After full commissioning by the end of 2027, more than 50 thousand employees will work in this plant of the company.

Tata's Long-Term Plans 

While Foxconn's strategy is to focus on scale and speed, on the other hand, Tata Electronics is also making strong plans to play a long innings in India. After acquiring Wistron's Karnataka factory in 2023, Tata has focused on continuous expansion.

Tata Takes 35% Stake

According to media reports, by 2025, Tata Company will have a 35 per cent share of India's iPhone production, which was 30 per cent in 2024, with an income of about 48 thousand crores. Tata took another in January 2025, major step by acquiring a 60% stake in Pegatron's India unit near Tamil Nadu. The company currently has two iPhone production factories in Tamil Nadu and one in Karnataka.

Tata had also started manufacturing old iPhone models by April in a new plant in Tamil Nadu's Hosur. Not only production, Tata Company is also expanding after-sales service. As of 5 June, Tata has taken over the repair of Apple devices from Wistron's ICT service unit in India. This move by Tata indicates a broader strategic thrust. With over 1 crore iPhones sold in India in 2024 and Apple's market share projected to up from just 1 per cent in 2020 to 7 per cent by 2024, the aftermarket opportunity is growing rapidly.