iPhone production initiates at a novel assembly plant in India by Apple.
Bustling news shows that the factory in question is being overseen by Indian Tata Electronics. One of our trusty sources hints that assembly of older iPhone models has commenced on one of the factory's production lines.
Adding to the buzz, Apple is considering initiating iPhone assembly at a factory run by Taiwanese company Foxconn in Bangalore, India, according to no less than four reliable sources, including a government official. A source revealed that the plant could produce a staggering 300 to 500 iPhones every hour and would be responsible for assembling the latest models, the 16 and 16e. The projected completion date for the construction of this massive $2.6 billion plant is December 2027, with the potential to create up to 50,000 jobs.
In the late days of April, the Financial Times broke the news that due to the US-China trade war, Apple is aiming to relocate all iPhone production intended for the U.S. market to India by the end of 2026, though earlier rumors indicated a 2025 target. Despite the majority of smartphones still being assembled in China, Apple has been aggressively expanding its production capacity in India through Tata Electronics and Foxconn. A source from Reuters clarified that the cost of producing iPhones in India is comparatively 5 to 8% higher than in China, with some cases hitting a 10% difference.
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Apple's iPhone production in India is moving at a swift pace, with plans to manufacture all U.S.-bound iPhones in India by 2026. Key milestones include:- Production capacity: India manufactured $22 billion worth of iPhones in FY2025 (ending March 2025), marking a significant 60% Year-on-Year growth, and currently accounts for roughly 20% of global iPhone output.- Factory operators: Tata Electronics took over Wistron's operations and now manages Pegatron's production. Foxconn continues to be the primary assembler, with a substantial campus in Tamil Nadu.- Growth projections: Capacity is expected to double in 2025. Experts estimate that India will need to produce 80 million iPhones annually to meet both U.S. and domestic demand.
While specific cost figures remain undisclosed, India offers production-linked incentives and $2.7 billion in new subsidies for electronics manufacturing, resulting in lower operational expenses. However, challenges persist, with most components still sourced from China, and relocating the full supply chain requiring an estimated $200–$500 million in investments. India's manufacturing lacks China's integrated component networks, causing logistical costs to increase. Experts predict that moving 10% of Apple's China production could take eight years, reflecting higher transition costs. In brief, while labor and subsidies may lower assembly costs in India, dependence on Chinese components and supply chain fragmentation keeps overall production costs higher than in China for now.
- The iPhone assembly in India is slated to be fully operational for U.S.-bound iPhones by 2026, following a growth of 60% Year-on-Year in iPhone manufacturing in FY2025.
- Tata Electronics and Foxconn are the key players in India's iPhone manufacturing, with Tata Electronics managing Wistron's operations and Pegatron's production, while Foxconn continues to assemble substantial volumes of iPhones in its Indian campus.
- The Indian government is offering production-linked incentives and $2.7 billion in new subsidies for electronics manufacturing, aiming to lower operational expenses and attract more technology-related industries, such as iPhone assembly.
- Challenges remain in the relocation and integration of components from China, with experts estimating that moving 10% of Apple's production could take eight years and require $200–$500 million in investments due to the current lack of integrated component networks.
