In a landmark shift that could redefine global manufacturing and tech geopolitics, Apple Inc. has produced $22 billion worth of iPhones in India, significantly expanding its footprint outside of China. The move reflects the Cupertino-based giant’s intensifying efforts to diversify its supply chain amidst growing geopolitical and economic uncertainties.

The accelerated shift was catalyzed by the “reciprocal tariffs” proposed by former US President Donald Trump in February, which placed immense pressure on US tech firms reliant on Chinese manufacturing. In response, Apple began ramping up its Indian production capacity, with a large portion of the output now directly exported to the United States.

A Strategic Pivot

Apple’s decision is not merely a reaction to tariffs—it is part of a larger recalibration of global tech supply chains. For decades, China was the epicenter of Apple’s manufacturing empire. However, rising labor costs, US-China tensions, and mounting regulatory risks have pushed the tech titan to look toward alternative hubs, and India has emerged as a strategic contender.

According to industry insiders, India now accounts for approximately 14–15% of Apple’s total iPhone production, up from just 1% in 2020. That number is expected to rise as Apple continues to deepen its partnerships with local manufacturers like Foxconn, Pegatron, and Wistron—all of whom are rapidly expanding facilities across Tamil Nadu and Karnataka.

India as Apple’s New Launchpad

The $22 billion milestone underscores India’s growing importance not just as a production base, but also as a critical export hub. Several of the newly manufactured iPhones—particularly the iPhone 14 and 15 models—are being shipped directly to the US and Europe, reducing Apple’s dependence on its traditional Chinese supply routes.

“This is not just a manufacturing shift—it’s a supply chain evolution,” said a senior analyst at a global consulting firm. “India is now firmly embedded in Apple’s global logistics and trade architecture.”

The Indian government’s Production-Linked Incentive (PLI) scheme has also played a key role, offering substantial tax benefits and subsidies to attract global tech manufacturers. Apple’s move is viewed as a major win for Prime Minister Narendra Modi’s “Make in India” campaign, which seeks to turn the country into a high-tech export powerhouse.

Impact on China and Global Trade

While Apple maintains some production operations in China, the shift has added pressure to an already fragile economic climate in Beijing. China’s zero-COVID policy, combined with growing scrutiny over intellectual property, has prompted several Western firms to seek “China plus one” strategies—where India, Vietnam, and Mexico are gaining ground.

Apple’s migration may influence other US giants to follow suit, potentially altering decades of Sino-centric tech manufacturing dominance.

“Apple is the canary in the coal mine. When they move, others notice—and follow,” noted a US-based global trade strategist.

What’s Next?

With global demand for iPhones continuing to rise, Apple is expected to double down on its India investments. Plans are reportedly underway for new Apple campuses, expanded supplier ecosystems, and deeper integration with local logistics networks to streamline global exports.

This development comes at a time when India–US economic ties are on the upswing, driven by mutual interests in counterbalancing China and fostering a more resilient, democratic trade framework.