By year-end, nearly 30% of world's iPhones will be India-made
What's the story
India is set to become a major player in Apple's global supply chain, with an estimated 28% of all iPhones being assembled in the country by 2026. This would be a significant increase from the 23% in 2025. The shift comes as part of Apple's strategy to reduce its reliance on China and diversify its manufacturing base.
Market shift
China's share of global iPhone manufacturing witnessing sharp decline
According to Smart Analytics Global (SAG), China's share of global iPhone manufacturing is expected to decline from 83% in 2024 to 74% in 2025. Meanwhile, India's contribution is projected to rise from 14% to 23%. This data highlights the growing role of India in Apple's supply chain as the tech giant tries to diversify its production base amid geopolitical tensions and tariff risks.
Strategic shift
Apple's diversification strategy
Abhilash Kumar, an analyst at SAG, said the surge in India's contribution is due to Apple's continued diversification beyond China and the capacity expansion by Indian manufacturers like Tata Electronics. SAG forecasts India to assemble 28% of global iPhone shipments in 2026, up from 23% in 2025. The growth is being driven by Apple's continued diversification beyond China, alongside capacity expansion by existing Indian manufacturers such as Tata Electronics, Kumar told Moneycontrol.
Manufacturing boost
Apple's localization milestone in India
Apple has ramped up its local production in India through partners like Foxconn and Tata Electronics. The company's strategy also includes Tata Group's acquisition of Wistron and Pegatron's India operations, marking a major localization milestone. Today, India produces a significant portion of global iPhones, including newer models, and serves as an important export hub for the US and Europe markets.
Export growth
iPhones became India's single largest exported commodity last year
In the last five years, Apple has produced iPhones worth nearly $70 billion under the government's production-linked incentive (PLI) scheme. Exports accounted for around $51 billion, or nearly 73% of total output. Notably, iPhones became India's single largest exported commodity in the previous fiscal year. The country has also started exporting components and sub-assemblies to China, reversing traditional supply chain flows.
Ecosystem integration
Can India replace China?
Apple and its suppliers are increasingly pushing for localization of components within India, indicating a shift from just being an assembly base to becoming an integral part of the electronics supply chain ecosystem. However, analysts warn that India won't be able to replace China in Apple's manufacturing network anytime soon due to China's structural advantages such as a dense supplier ecosystem, mature labor and engineering base, logistics efficiency and decades of manufacturing experience.