Apple Inc. is rapidly strengthening its manufacturing ecosystem in India, led by Taiwanese contract manufacturer Foxconn and domestic partner Tata Electronics, as it prepares for a significant supply chain pivot away from China. This strategic shift coincides with rising US-China trade tensions and President Donald Trump’s new round of tariffs, which exceed 100% on key Chinese exports, including electronics and electric vehicles.

Foxconn Begins Export of Apple AirPods from Hyderabad

Foxconn Technology Group has officially commenced the production of Apple AirPods at its new facility in Hyderabad, Telangana. These units are currently being produced for export markets, marking a significant milestone in Apple’s India journey. This is the first time Apple’s popular wireless earphones are being assembled in the country.

This manufacturing initiative is part of Apple’s broader ambition to establish India as a global hardware hub, diversifying away from its long-time base in China. The Hyderabad plant is expected to enhance Apple’s export capability significantly.

New Bengaluru iPhone Plant to Begin Operations Soon

Foxconn is also on track to launch operations at a much larger facility in Devanahalli, near Bengaluru, Karnataka. The plant, developed with a $2.8 billion investment (₹25,000 crore), will be the company’s second-largest unit outside China, and will be crucial in ramping up iPhone production for both domestic and export markets.

The Devanahalli facility is designed with a peak capacity of 20 million units annually, a scale that reflects Apple’s growing confidence in India's potential as a reliable manufacturing base.

Trial Production of iPhone 17 Begins in India

Sources indicate that Foxconn has already initiated trial production of the upcoming iPhone 17 series in India, making it one of the first instances of next-generation Apple devices being prototyped in the country.

Meanwhile, Tata Electronics, now Apple’s second-largest supplier in India after acquiring facilities from Wistron and Pegatron, is also contributing significantly. The company has started trial production of iPhone components like casings and has launched operations at its Hosur-based iPhone plant.

This facility, although currently assembling older-generation iPhones, will soon begin shipping units, increasing its contribution to Apple’s India exports.

Apple Sets Target to Manufacture Over 60 Million iPhones in India

According to an exclusive Moneycontrol report dated April 26, Apple is planning to manufacture over 60 million iPhones annually in India by the end of 2026. This volume will be enough to meet entire US demand, the largest market for Apple globally.

This plan marks a major escalation in Apple’s efforts to de-risk its operations from geopolitical and trade-related uncertainties, especially the unpredictable policy swings between Washington and Beijing.

March 2025 Sets Record for India Exports

Apple’s focus on India is already bearing fruit. In March 2025, the tech giant exported iPhones worth $2 billion from India—a record monthly figure for both Foxconn and Tata Electronics.

The bulk of this record shipment was handled by Foxconn, but analysts expect Tata’s contribution to increase steadily as its plant becomes fully operational.

Apple’s Strategic Move: Reducing Dependency on China

Industry analysts believe Apple’s aggressive move into India is not just opportunistic but strategically essential. As Navkendar Singh, Associate VP at IDC India, stated:

“These are logical and necessary steps to scale up production in India with a medium-term goal of reducing dependency on China.”

He added that India offers both capability and scalability, making it easier to expand existing lines rather than establish greenfield factories elsewhere.

India's Rising Role in Apple’s Global Strategy

In 2024, Apple manufactured 40–45 million iPhones annually in India, accounting for 18–20% of global output. With continued investment, this figure is expected to increase to 25–30% by 2025.

The Indian government’s Production Linked Incentive (PLI) scheme and state-level support for electronics manufacturing are making India an attractive alternative to East Asia. Companies like Apple benefit from a cost-effective workforce, improving infrastructure, and strong political will to make India a global export hub.

Conclusion: India Emerges as Apple’s Key Manufacturing Hub

Apple’s decision to scale up operations in India—through partners Foxconn and Tata Electronics—marks a defining moment in the country’s tech manufacturing journey. With AirPods already being exported and iPhone 17 trials underway, India is no longer just a backup option—it’s becoming Apple’s new frontline.

If current trends continue, India could become the largest iPhone manufacturing base after China, potentially surpassing it in specific export volumes by 2026. This strategic alignment also offers India a unique opportunity to emerge as a global technology manufacturing powerhouse.

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