Synopsis: Apple is now producing more iPhones in India, and this brings billions in exports, benefits from government policies, and encourages more Indian suppliers to get involved. You can see how this affects global supply chains and creates new opportunities for Indian companies and investors.
India has quietly become an important part of Apple’s global strategy and is now one of the company’s key iPhone manufacturing hubs worldwide. Not long ago, nearly every iPhone was made in China.
Today, about one in five iPhones globally is assembled in India, and that share is expected to rise to roughly one in four by 2027. This shift means Apple is not just selling iPhones in India; it is increasingly manufacturing them here, exporting billions of dollars’ worth of “Made in India” iPhones each year.
Why did Apple shift iPhone manufacturing to India?
Apple’s move to India isn’t an emotional decision but rather based on careful numbers. The first major reason is the risk associated with China. When the world shut down during the pandemic and global supply chains halted, Apple realised that relying heavily on one country was risky.
Also, U.S.-China trade tensions and tariffs, which currently attract 34 percent, made it costly to ship phones from China to the largest market, which is the United States. India provides a less expensive, more stable option with a young workforce and a government willing to offer financial incentives.
Secondly, India’s Production Linked Incentive (PLI) scheme for electronics manufacturing has been a significant factor. Under this scheme, Apple and its partners can receive cashback of 4-6 percent on increased sales of phones made in India, potentially adding up to hundreds of millions of dollars over five years. This has encouraged Apple to open or expand factories in Tamil Nadu, Karnataka, and Telangana.
In FY22, Apple’s iPhone production in India was valued at about just $2 billion (Rs ~18,000 crore), which in FY25, reached roughly $22 billion (Rs ~1.98 lakh crore), which is a staggering 122 percent CAGR growth, with around 80 percent of those phones exported.
How big is India in Apple’s iPhone world?
Today, India accounts for about 20 percent of Apple’s global iPhone production, and analysts expect that to increase to 25 percent by 2027. This means that if Apple produces 200 million iPhones in a year, about 50 million of them will be assembled in India in the next few years. Even more impressive, exports of iPhones made in India have already exceeded the $50 billion mark, indicating India’s potential in this race.
To support this growth, Apple has strengthened its presence in the local ecosystem. The company now collaborates with around 45 Indian and foreign suppliers, including local component manufacturers and smaller firms. These suppliers have created approximately 350,000 jobs, 120,000 of which are direct factory positions. When you consider the employees in Apple’s partner-run assembly factories, total employment related to Apple’s operations in India reaches into the hundreds of thousands.
Who is making iPhones in India?
Apple does not manufacture iPhones on its own, rather it depends on large contract manufacturers like Foxconn (Hon Hai), Wistron (which is now owned by the Tata group), and Pegatron, whose factory is now taken over by Tata Electronics. Foxconn, already Apple’s largest iPhone assembler globally, intends to increase its capacity in India to about 30 million iPhones a year, up from 15 million just a year or two ago. Tata Electronics has also invested significantly, establishing a major iPhone plant in Hosur, Tamil Nadu, designed to handle a substantial portion of Apple’s future production.
Alongside these large factories, Apple is incorporating more Indian component companies into its supply chain. Companies such as Tata Electronics, Aequs, Jabil, Microplastics, ATL, Salcomp, Foxlink, Motherson, Bharat Forge, Wipro PARI, Hindalco, Avary, SFO Technologies, and VVDN are now part of the iPhone ecosystem, contributing to areas like casings, connectors, batteries, machinery, and logistics. Many of these are publicly traded Indian companies, meaning that as Apple grows its footprint in India, their revenues could benefit over time.
Why is this important for investors?
For investors, this shift isn’t just about “Apple in India” as a headline. It represents three clear investment themes: manufacturing, supply chain, and distribution. First, Apple’s move to India is boosting local contract manufacturers and component makers, whose revenues and profits can grow with each new assembly line.
Second, the PLI-linked electronics ecosystem is creating long-term capital expenditure cycles and higher-value jobs, which can improve overall corporate earnings in the electronics and industrial goods sectors. Third, increased local manufacturing often leads to lower import duties and slightly cheaper iPhones, which can drive higher sales in India’s rapidly growing smartphone market.
All of this occurs within India’s vast consumer landscape. Although Apple’s revenue from India is still less than that from China or the United States, it is growing quickly. The number of Apple smartphone users in India is significantly rising, helped by more buyers of premium phones, better financing options, and a growing middle class with higher disposable income.
How can you be part of this growth journey?
Investors wanting to capitalise on Apple’s manufacturing shift to India can consider three types of companies: distributors like Redington, supply chain participants like Bharat Forge and LMW, and broader electronics or industrial companies exposed to Apple-related investments. Each of these plays a different role in the ecosystem, and understanding their business models can help you identify appropriate investment options.
One prominent name is Redington Ltd., one of India’s largest IT product distributors and a key distributor of Apple products in the country. Redington does not produce iPhones; it acts as a middleman between Apple and thousands of retailers, resellers, and corporate clients. The company manages logistics, warehousing, financing, and sales support, allowing Apple to reach small-town stores and major city corporate offices through Redington’s network.
In recent quarters, Apple has accounted for 29 percent of Redington’s revenue, making it one of the company’s most important partners. As Apple increases local production and sales in India, Redington stands to gain from higher volumes, more demand for premium brands, and a broader retail reach.
Another group of companies is involved in Apple’s component and industrial supply chain. Bharat Forge manufactures complex metal components and is expanding into electronics and automotive manufacturing; analysts see it as a potential beneficiary of Apple’s investment plans in India. Also, reports indicate that Apple is in talks with Bharat Forge to make it a supplier, potentially manufacturing components like mechanics.
Also, Lakshmi Machine Works (LMW) supplies high-precision equipment used in component-making plants within Apple’s ecosystem. These companies may not report Apple-specific revenue, but their capital expenditures and order flows are indirectly linked to Apple-driven electronics and automation investments and may align with Apple’s stringent quality and specification requirements for certain components in its devices.
Other public companies often mentioned in the context of Apple’s supply chain in India include Tata Electronics (through the Tata Group), Hindalco (aluminium components), Motherson Sumi (wiring and modules), and Wipro PARI (precision engineering and automation). None of these are pure-play Apple stocks, but they operate in sectors likely to experience long-term growth if Apple continues to expand its manufacturing in India.
How to approach this as an investor?
For new investors, the Apple-India manufacturing story is a structural theme rather than a speculative bet on a single stock. It makes sense to consider companies where exposure to Apple is significant but not total, ensuring that even if Apple changes its strategy, these businesses have other revenue sources.
Redington illustrates this well: it distributes products from Apple, HP, Dell, Lenovo, and Samsung, so it isn’t solely reliant on Apple. Likewise, industrial players like Bharat Forge or LMW serve multiple sectors, including automotive and defense, making Apple-related growth a bonus rather than their entire business.
In summary, India has become Apple’s preferred iPhone manufacturing hub due to lower risks, strong incentives, skilled labor, and a growing consumer market. For investors, this translates into opportunities not only in Apple itself but also within the Indian ecosystem of distributors, component makers, machinery suppliers, and industrial leaders building the foundation of Apple’s strategy in India.
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