Apple is significantly increasing its iPhone production in India, with the country now responsible for one-fifth of global iPhone manufacturing. This shift was already underway before Trump’s recent tariffs, It seems Apple is trying to reduce its heavy reliance on China, where the majority of its iPhone production takes place.
We wrote last week on how the latest tariffs could impact iPhone pricing, but with the policies changing almost every day it seems churlish to try to predict what might happen next. An exemption for iPhones is certainly possible, but Apple is probably keener than ever to diversify production so any sudden changes won’t be so damaging.
India offers Apple both a massive consumer market and access to affordable, high-quality supply chains, making it an ideal alternative to China. According to recent reports, India manufactured approximately $22 billion worth of iPhones between March 2024 and March 2025 – a chunky 60% increase on the previous year. An estimated 12 million units stayed in the country, with the rest shipped around the world.
Further diversification may be on the horizon, with indications that Apple might also ramp up production in Brazil. While questions about the ethics of low-cost overseas labor remain, a move to US production could take years to happen, if at all. It’s hard to see how it could be done without consumers being hit with further price rises for all-American iPhones.
Apple’s ultimate goal appears to be producing 25% of all iPhones in India. While questions about the ethics of low-cost overseas labor remain, spreading production geographically helps Apple shield itself from potential disruptions, such as trade disputes or other geopolitical issues beyond its control.