With US-based companies scrambling to figure out and lay out alternate supply chains to deal with new US tariffs on China-sourced goods, Apple has shown how swift and decisive one can be, even if its a $3 TRILLION market cap company. Having already implemented quick switch to its India assembly partners, with plans to shift almost all of its US phones assembling to India, a new plant, run by Tata group, has now begun production of Apple’s latest iPhones, reports Reuters.
The new Tata Electronics plant, located in India’s electronics manufacturing hub of Hosur in the southern state of Tamil Nadu, has started the production of older iPhone models, marking Tata’s deeper integration into Apple’s supply network. Meanwhile, a second factory operated by Foxconn in Bengaluru is nearing the launch of trial production lines that will eventually produce the iPhone 16 series, according to reports. The $2.6 billion investment in Karnataka is projected to employ around 50,000 workers once it is fully operational by the end of 2027.
China still accounts for over 75% of the company’s iPhone production, but India’s share has rapidly surged to a significant 18%, according to market research firm Counterpoint. Apple’s internal target is to relocate the majority of its iPhone production for the US market to Indian facilities by 2026. This shift will allow Apple to mitigate risks associated with over-reliance on Chinese manufacturing. By increasing production capacity in India, Apple can ensure a more resilient supply chain that can better withstand geopolitical uncertainties and potential trade disruptions.
And for India, it marks the latest boost to its electronics manufacturing sector and aligns with Government’s ‘Make in India’ initiative, creating thousands of jobs (as is evident by the Karnataka plant) and attracting further foreign investment (as well as more focus on technical education and vocational training). If Apple’s Indian production continues to scale efficiently, it could prompt further local sourcing of components and lead to more integrated electronics ecosystems within the country.
The urgency behind Apple’s pivot to India is closely tied to escalating trade tensions between Washington and Beijing. US President Donald Trump’s administration has signaled plans for sweeping new tariffs on a range of Chinese imports, some of which are pretty steep (and China responded by imposing tariffs of 125% on American goods earlier this month). While electronics have so far been largely exempt from the most severe trade measures, the risk of future inclusion has led Apple to fast-track diversification efforts. Earlier, the tech behemoth exported $2 billion worth of iPhones from India to the US, including 600 tons of devices. At that time, Foxconn accounted for more than half of the total number.
Of course, India’s appeal to Apple extends beyond immediate tariff concerns. The country offers a large labor force, increasing political stability for foreign investment, and supportive government policies aimed at boosting domestic electronics manufacturing. Moreover, partnerships with firms like Tata and Foxconn also provide Apple with scalable infrastructure without the overreliance on any single vendor.
Currently, the company’s expansion in India now spans five major facilities. The Foxconn plant in Bengaluru is expected to reach a production rate of 300 to 500 iPhones per hour, according to a report by the Economic Times. The Hosur facility, though currently limited to a single assembly line, is expected to ramp up output in stages.
Mirroring Apple, Google too is expected to shift a significant portion of its high-end pixel smartphone production to India. Though not moving as swiftly as Apple, Google is already readying up plans to significantly boost production with its India partners and import more phones from the country, compared to other countries such as China and Vietnam.
