Apple’s suppliers in India produced iPhones worth over 15,000 crore rupees (US$1.8 billion) in May 2025, according to industry data and market research firms.

This figure reflects a slight decline from production highs in previous months but exceeds the average monthly production of 10,000-11,000 crore rupees (US$1.26 billion) recorded in 2024.

As of May 2025, Apple’s vendors have manufactured iPhones worth 84,000 crore rupees (US$10.06 billion).

This includes both domestic sales and exports and is equivalent to the total domestic consumption projected for the entire calendar year of 2024.

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🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Apple’s strategic shift to India marks a historic manufacturing transition

Apple’s rapid expansion in India represents one of the largest manufacturing shifts in consumer electronics history, with production growing from zero to approximately 15 million units between 2016-2023 1.

The current production value of ₹84,000 crore in just five months of 2024 equals the entire domestic consumption for the calendar year, highlighting the exponential acceleration of Apple’s India manufacturing strategy [Original article].

This transition is particularly significant as CEO Tim Cook has publicly committed that a majority of iPhones sold in the US will soon have India as their country of origin, representing a fundamental restructuring of Apple’s global supply chain 2.

The transformation was illustrated in April 2025 when Apple transported approximately 1.5 million units (600 tons) of India-made iPhones to the US, demonstrating the operational scale this shift now encompasses 3.

2️⃣ Manufacturing realities create significant headwinds despite strategic necessity

Despite the strategic importance, Apple faces substantial operational challenges as production in India is estimated to be 5-10% more expensive than in China, creating margin pressure for a company known for its profitability focus 2.

The pace of production scaling tells a revealing story. India’s iPhone manufacturing is currently expanding at approximately one-tenth the speed that China achieved during its comparable growth phase, indicating significant efficiency gaps 1.

Apple’s operations in India remain primarily focused on final assembly rather than end-to-end manufacturing, with most components still sourced from China, creating supply chain vulnerabilities and logistical complexities 1.

Industry experts suggest the transition to full production capability matching China’s ecosystem will require another 5-10 years of sustained investment and capability building, despite the political urgency driving the shift 1.

3️⃣ Geopolitical pressures and tariff threats reshape global tech manufacturing

Apple’s production surge in March (₹19,630 crore) directly responded to then-impending US tariff deadlines, demonstrating how geopolitical factors now directly dictate manufacturing decisions for global tech companies [Original article].

The threat of tariffs has transformed what would normally be a multi-year strategic shift into an accelerated transition, as evidenced by Apple’s commitment to increase India’s iPhone manufacturing share to 26-28% by 2025 4.

Increasing political tensions impact even operational details, with restrictions on Chinese engineers relocating to India creating staffing challenges for Apple’s manufacturing partners who rely on experienced personnel to establish production lines 5.

This transition represents a broader trend of “friend-shoring” in global technology supply chains, as companies reassess manufacturing locations based on geopolitical relationships rather than purely economic considerations 3.

Recent Apple developments

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