Apple to Double Made-in-India iPhone Production: A Strategic Shift Away from China

In an effort to diversify its manufacturing footprint and reduce reliance on China, Apple is set to significantly ramp up its iPhone production in India. The company’s goal is to double the number of iPhones made in India this year, signaling a strategic shift aimed at both bolstering its presence in the Indian market and mitigating risks associated with its reliance on China for production.

Surge in iPhone Production in India

Apple’s push to diversify production has gained momentum, with Foxconn, one of the key iPhone assemblers, taking center stage in these efforts. According to reports, Foxconn is set to double its iPhone production in India, with plans to produce between 25-30 million units in the country this year. This is a significant increase from the 12 million units assembled in India last year, highlighting the growing importance of India as a manufacturing hub for Apple.

Foxconn is currently working on ramping up operations at its new plant in Bengaluru, which is expected to play a pivotal role in the expanded production capacity. The company has already begun limited trials, focusing on ensuring that the quality of the assembled units meets Apple’s high standards.

The Push for Self-Sufficiency

India has long been a key part of Apple’s strategy to diversify its supply chain. The country has gradually become a second hub for iPhone manufacturing, starting with the iPhone SE and now including the latest flagship models. Apple aims to have 25% of its iPhone production taking place in India by 2027, a goal that is increasingly within reach as the company works with suppliers like Foxconn to build out capacity.

The Indian government has supported this push with a range of tax incentives aimed at encouraging local production. This initiative, known as the “Made in India” initiative, is designed to make it more attractive for foreign companies like Apple to set up production facilities in India. In contrast, China has reportedly interfered with some of these plans, pushing Apple to look for alternatives.

The Role of Foxconn and

Foxconn’s new facility in Bengaluru is central to this push to expand production in India. The plant, which is under construction, is expected to become operational soon, with ambitious production targets set for the year. While the company began with limited trials a few months ago, it is now focused on scaling operations while maintaining Apple’s strict quality standards.

With this facility, Foxconn aims to reach a production volume of 25-30 million iPhones by the end of this year, effectively doubling its production from 2024. Analysts agree that this aligns with Apple’s broader objective of increasing its reliance on India for manufacturing, with India set to become a crucial part of Apple’s supply chain strategy moving forward.

What Undercode Say:

Apple’s decision to increase iPhone production in India is a logical response to the ongoing geopolitical shifts and supply chain challenges. Over the past several years, tensions between the U.S. and China have escalated, pushing companies like Apple to rethink their manufacturing strategies. The Chinese government’s intervention in Apple’s production plans further strengthens the case for shifting more production to other regions, particularly India, which is seen as a more stable and favorable environment for long-term growth.

India offers several advantages, including a large, youthful workforce, a growing tech infrastructure, and a government eager to attract foreign investment. Furthermore, the “Made in India” initiative has been a crucial factor in encouraging companies like Apple to increase their local manufacturing. The Indian government has implemented tax breaks and subsidies to help offset the costs of setting up production facilities, making the country an attractive destination for multinational companies looking to diversify their supply chains.

Foxconn’s role in this process cannot be overstated. As one of Apple’s primary suppliers, Foxconn’s ability to scale production while meeting Apple’s stringent quality requirements will be critical to the success of this transition. The Bengaluru facility, which is expected to ramp up production soon, is a testament to Foxconn’s commitment to meeting Apple’s demand for higher production volumes. With the support of the Indian government and the expansion of production capacity, India is well-positioned to become a key player in Apple’s global supply chain.

However, challenges remain. Maintaining high quality standards during rapid expansion is no small feat, and Foxconn must ensure that the new facility meets Apple’s rigorous expectations. Additionally, the political and economic landscape in India could pose risks, particularly as tensions between India and China continue to evolve. Nevertheless, the shift to India appears to be a strategic move that could pay long-term dividends for Apple as it seeks to reduce its dependence on China and expand its footprint in one of the world’s largest and fastest-growing markets.

Fact Checker Results:

Increase in Production Volume: Accurate – Foxconn has confirmed that iPhone production in India will double to 25-30 million units this year.
Location of New Facility: Accurate – Foxconn’s new plant is being built in Bengaluru, which is central to India’s growing tech manufacturing hub.
Apple’s Goal of 25% Production in India by 2027: Accurate – Industry analysts have reported this target, and Apple is on track to meet it.

References:

Reported By: https://9to5mac.com/2025/03/31/made-in-india-iphones-to-double-this-year-in-continued-diversification-push
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