Apple’s Relation with India Going Stronger: How the Tech Giant Is Doubling Down on India Market & Manufacturing

From ramping up local factories to record-setting exports and retail expansion—Apple’s partnership with India is entering a new era of growth and diversification. Here’s a breakdown of how Apple’s India strategy is evolving and why it matters globally.

🌍 1. Manufacturing Boom: India as Apple’s New Production Hub

✅ Record-Breaking Growth

In the first half of 2025, Apple’s iPhone production in India surged 53% year-over-year, reaching 23.9 million units, with exports rising 52% to 22.88 million units—worth $22.56 billion.turn0search1
India is becoming Apple’s largest iPhone export hub, delivering nearly 71% of U.S. iPhone imports, up from just 31% a year ago.turn0news15turn0news12

🏗️ Big Investments, Big Ambitions

Foxconn unveiled a $1.5 billion display module plant near Chennai, set to create ~14,000 jobs and produce key iPhone parts locally.turn0news19
Meanwhile, Tata Electronics acquired a 60% stake in Pegatron’s Chennai iPhone plant, positioning Tata as a major rival to Foxconn. Its Hosur facility is doubling output to 100,000 enclosures per month.turn0news17turn0news18

📈 Long-Term Scale-Up Plans

Apple is reportedly targeting 70–80 million iPhones produced in India by end of 2026, representing 40% of global production.turn0search4turn0search2

💰 2. Consumer Market Momentum: Apple’s Growth in India

🔝 Premium Device Leader

Analysts project 13–14 million iPhones shipped in 2025, sustaining ~16% growth despite macro pressures. India is now one of Apple’s top-five markets by volume.turn0search3
Premium segment share (devices > $600) grew from 56% to 64% in Q4 2024, despite overall market softness—demonstrating Apple’s dominance in aspirational consumer tiers.turn0search3

🛍️ Expanding Retail Footprint

Apple's revenue in India hit record levels for the April–June 2025 quarter, with gains across iPhones, Macs, and Services.turn0news14
Following the strong performance, Apple is set to launch four new flagship stores in India over the coming year.turn0search0turn0news14

🌆 Tier II & III City Focus

To drive sustained growth, Apple is pushing beyond big metros—tapping into growing demand in smaller cities and towns through retail expansion and financing options.turn0search0turn0search3

🔧 3. Strengthening the Ecosystem: India’s Component & Supplier Network

🔩 Localizing the Supply Chain

Apple and its suppliers (Tata Electronics, Motherson, Sunwoda, Foxlink, Salcomp, Jabil, Aequs) have built a diverse supplier ecosystem to support not only domestic assembly but also global parts exports.turn0reddit32turn0reddit28
India has begun exporting battery packs, charging coils, magnetics, and even iPhone enclosures to China and Vietnam—demonstrating growing integration into Apple’s supply chain.turn0reddit32turn0reddit28

🔮 AirPods & iPad Local Production

Apple is expected to begin assembling AirPods in 2025, and major suppliers like Foxconn are evaluating iPad assembly lines in Tamil Nadu. Corning’s new glass plant is further strengthening the ecosystem.turn0search25turn0search5

📊 4. Geopolitics & Risks: Navigating U.S. Tariffs and Chinese Tensions

🇺🇸 U.S. Pressure on Apple

Former U.S. President Trump criticized Apple for outsourcing manufacturing, threatening 25% tariffs on Indian-made iPhones, and discouraging expansion in India.turn0news16turn0news20
However, analysts believe tariffs will have minimal impact—Apple may absorb costs or slowly pass them to consumers rather than halt operations.turn0news15turn0news13

🌏 Strategic Diversification

Apple’s shift—under the "China Plus One" strategy—is aimed at reducing supply-chain risk. India now exceeds China as the main source of U.S. iPhone imports.turn0news12turn0news11
Regulatory hurdles and infrastructure challenges exist, but Apple’s confidence, supported by governmental Production Linked Incentives (PLI), remains strong.turn0news21turn0reddit34

🧑‍💼 5. Leadership with Indian Heritage: Sabih Khan’s Role

Indian-American -executive Sabih Khan, born in Uttar Pradesh, is Apple’s Senior VP of Operations and will become Chief Operations Officer in July 2025. He oversees Apple’s global supply chain and supplier responsibility programs.turn0search26
His rise exemplifies India’s influence on Apple’s global manufacturing footprint and strategic operations.

📈 6. Why It Looks Stronger Than Ever: A Summary

🏁 Final Take: Apple-India Ties Growing In Value & Scope

Apple’s relationship with India is no longer experimental—it’s strategic. With aggressive production targets, expanding retail reach, and a growing supplier network, India is central to Apple’s global strategy. While risks remain in tariffs and regulatory complexity, India’s trajectory as both a market and manufacturing powerhouse appears irreversible.

By 2026–27, analysts forecast India may produce nearly one-third of global iPhones, generate US $34 billion in export value, and solidify its position as the world’s third-largest Apple market after the U.S. and China.turn0search2turn0search0

Apple is proving that India is more than a growth market—it’s a foundation for its future.

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