According to reports from Bloomberg, Apple Inc. has achieved a major manufacturing milestone by producing 55 million iPhones in India during 2025, representing 25% of its global production and marking a dramatic acceleration of its supply chain diversification strategy. The company has achieved a 53% increase in iPhone production in India during 2025, demonstrating the country's growing importance in Apple's global manufacturing strategy. This represents a stunning transformation from just five years ago when India accounted for barely a fraction of iPhone production. The company has partnered with contract manufacturers including Foxconn, Pegatron, and Tata Electronics to build massive production facilities across India, employing tens of thousands of workers with precision manufacturing capabilities. As per Bloomberg, Apple is making 25% of its total iPhones in India as part of its strategic pivot from China manufacturing, with the company now manufacturing all models of its latest iPhone 17 series in India, including Pro and Pro Max models. For the first time, Apple is assembling its entire current iPhone 17 lineup in India, including the premium Pro and Pro Max models, marking a significant milestone in Apple's supply chain diversification strategy.
The production shift announcement has triggered significant market reactions, with Redington, Apple's official distributor in India, experiencing substantial gains. As per Live Mint, Redington shares surged 11.5% to ₹259.30 on Tuesday, March 10, 2026, snapping a five-day losing streak and ending the stock's recent decline. The stock has remained under pressure in recent months, falling from ₹334.80 to ₹259.30, resulting in a 22.5% decline over nine months. However, the company's long-term performance remains strong, with shares rallying from ₹44.33 seven years ago to ₹272.35, translating into a massive 514% gain. Redington has benefited significantly from Apple's expansion, with Apple contributing 33% to the company's topline in the December quarter, up from 30% in the same period last year. The stock has delivered impressive long-term returns, providing investors with more than 201% returns over the last five years and over 56% gains in the last three years.
This production expansion is part of Apple's strategy to minimize risks posed by tariffs on goods manufactured in China and navigate an increasingly uncertain global landscape. For 2025, shipments from China, Apple's main production hub, faced challenges from US tariffs arising from tensions between the two countries. The levies prompted Apple and its suppliers to shift a greater share of devices destined for the US market to alternative production bases, with India emerging as a key hub. The shift towards India has accelerated as Apple seeks to minimize exposure to tariffs linked to the ongoing US-China trade tensions. While China continues to produce the majority of Apple's devices, the company has steadily increased production capacity in India to diversify risk and ensure smoother global supply chains. The company even chartered cargo flights in March 2025 to airlift roughly $2 billion worth of iPhones from Chennai to beat looming tariff deadlines. The stakes were high enough that President Donald Trump personally warned Apple CEO Tim Cook against expanding further in India at a business summit in Doha in May.
According to Bloomberg, Apple has stepped up its expansion in India following Prime Minister Narendra Modi's move to provide production-linked incentives to make India a global manufacturing hub. These incentives in the form of subsidies tied to production volumes have helped companies like Apple offset structural cost disadvantages amid a lack of supply chain and logistical issues in trading with China. The Indian government's production-linked incentive scheme has made India competitive with established manufacturing hubs, though the company is also investing heavily in training programs and supply chain infrastructure that goes well beyond what government subsidies cover. However, electronics assembly and parts manufacturing remain relatively expensive in India compared to countries such as China and Vietnam, prompting companies to demand additional government support. In the 2026–27 Union Budget, the government introduced a five-year income tax exemption allowing foreign companies like Apple to provide manufacturing equipment to Indian contract manufacturers without triggering tax liabilities—a policy change Apple had actively lobbied for. With the current smartphone production subsidies set to expire on March 31, manufacturers are in discussions with New Delhi over a fresh round of incentives to drive export growth, as India must act quickly to retain its cost competitiveness.
India is also becoming an important consumer market for Apple, with the company shipping 14 million units there last year, representing a 9% year-over-year increase, according to analyst firm Counterpoint. Separately, Bloomberg noted that total iPhone sales in the country surpassed $9 billion last year. In FY25, Apple achieved a record 12 million units shipped, achieving a 10% market share, positioning it as the fourth-largest smartphone brand in India. The premium segment (devices priced above $600) experienced notable growth, reflecting a consumer shift towards higher-end models. Apple is reportedly in talks to launch Apple Pay in India this year and opened its sixth Indian store last month. The timing couldn't be better for India's ambitions as Prime Minister Modi's 'Make in India' initiative has been pushing to transform the country into a global manufacturing powerhouse. Apple's commitment provides validation that attracts other tech companies, with ripple effects already visible as other smartphone makers and electronics manufacturers are expanding their Indian operations, creating a competitive manufacturing cluster. According to Canalys data, the production surge has had a dramatic effect on trade flows, with India overtaking China in the April–June 2025 quarter to become the largest source of smartphones shipped to the US for the first time, capturing 44% of the market compared to China's 25% share.
