Apple shifts production to India, 1 in 5 iPhones now made there - Bloomberg

According to sources, the company now produces 20% of its iPhones, or every fifth iPhone, in this South Asian country. The aforementioned $22 billion represents the estimated factory cost of the devices, not the retail price with a markup.

The production growth indicates that Apple and its suppliers are accelerating the shift from China to India. This process began during the COVID-19 lockdowns when the situation disrupted production at the company’s largest factory.

Bloomberg reports that the majority of iPhones in India are assembled at the Foxconn Technology Group plant in southern India. Tata Group's electronics manufacturing division, which acquired Wistron Corp. and controls Pegatron Corp.'s operations, is also a key supplier.

On Tuesday, India’s technology minister stated that out of the total production volume in the country, Apple exported $17.4 billion worth of iPhones from the region in the fiscal year ending in March 2025.

Shipments of iPhones from India to the US accelerated after President Donald Trump announced plans to impose "reciprocal" tariffs in February. The average production and export figures for Apple in India significantly increased throughout the fiscal year that ended in March.

According to Bloomberg News, Apple is increasingly directing iPhones made in India to American consumers.

Earlier on Friday evening, the Trump administration exempted electronics, including smartphones and computers, from reciprocal tariffs. This is good news for companies like Apple and Nvidia Corp., although the delay reportedly does not apply to the separate 20% tariff on China imposed to pressure Beijing in the fight against fentanyl.

This also means that iPhones produced in India are currently not subject to tariffs. Meanwhile, tariffs on China are likely to push companies like Apple to accelerate the reorientation of supply chains.

However, with nearly 200 suppliers and a massive reliance on China, transitioning to other countries could take years. Summarizing, Bloomberg writes that despite Trump’s push for iPhone production in the US, Apple is unlikely to relocate production there anytime soon due to factors like a lack of manufacturing capacity and the workforce needed to assemble devices.

Apple and Trump's tariffs

Recently, Apple chartered cargo flights to transport 600 tons of iPhones from India to the US. The tech giant took this step to bypass President Trump’s tariffs.

Earlier, it was reported that the price of an iPhone could rise to $3500 if it is produced in the US.