Despite euphoria surrounding a potential shift of iPhone manufacturing to India from China, experts seem to think otherwise, citing manufacturing difficulties. As per a S&P Global report, India will need to double shipments, either through new capacity or by redirecting shipments for the domestic market.
iPhones made in India are predominantly exported to the US. Total exports to the US was 82% of phones manufactured in India in the three-month period to February 28, 2025, S&P Global Market Intelligence data shows. That surged to 97.6% in March 2025 as a result of a 219% jump in exports, reflecting the firm looking to preempt higher tariffs. However, India manufactured iPhones account for only 8.5% of the phones sold in the US, with China accounting for three-fourth of the total sales.
As per S&P, iPhone sales in the US were 75.9 million units in 2024, while India-manufactured only 3.1 million units in March 2025. “This means India needs to double shipments either through new capacity or by redirecting shipments bound for domestic market.” In both cases, India will have to be dependent on China for phone components, it added.
The major challenge in shifting iphone manufacturing to India is a dearth of components. India still depends heavily on imported components from China for its assembly of electronic products, says Nomura, which feels Chinese exporters could try to use India to reroute Chinese exports to the US. “China will not easily let entire iPhone manufacturing move to India. China will look for a strategic partner in some other country and reroute its products from that country to the US. This could be a Middle East country,” says Faisal Kawoosa, founder of Techarch. As per a report by the Financial Times, Apple is planning to shift the manufacturing of all iPhones (over 60 mn) meant for sale in the US to India by next year.
Due to the trade war between the US and China, Apple is diversifying its iPhone production from China to India. The company started producing its devices in India through contract manufacturers, beginning with basic iPhones in 2017 and starting to make pro models in 2022. As per data, Apple assembled $22 billion worth of iPhones in India in FY25, marking a 60% rise over the previous year. This means Apple manufactures 20% iPhones in India. Currently, three major iPhone manufacturers in India -- Foxconn, which produces 67% of India’s iPhone output; Pegatron, 17%; and Tata Electronics handling the remaining share. All of them source their components from China.