Bad news for China as Apple brings Rs 19000000000000 to India because…, are all iPhones going to be…? Will the prediction come true?
New Delhi: American tech giant and iPhone manufacturer Apple is planning to take advantage of the ongoing trade war between the United States and China. The company has significantly increased the production of its popular iPhones in India, causing concern for China. In the 12 months ending March 2025, iPhones worth USD 22 billion (approximately Rs 1.90 lakh crore) were manufactured in India — a 60 percent increase compared to 2024. Apple’s strategic shift of its supply chain away from China has led to a surge in production in other countries. This move has reportedly alarmed China, as it risks losing its dominant position in the global manufacturing landscape.
Every Fifth iPhone Is Made In India
Interestingly, one in every five iPhones made on the planet is being made in India. The USD 22 billion is the factory price of an iPhone. Apple’s major Indian iPhone production relies heavily on Foxconn’s large South Indian facility. Tata Group’s acquisition of Wistron and Pegatron operations strengthens its position within Apple’s Indian supply chain. This development is further complicated by the ongoing US-China semiconductor rivalry.
Semiconductors
Semiconductors are one of the major essential components of electronic devices. its microchips are used in artificial intelligence, transportation, healthcare, military systems, and communications. These microchips are so important that some people call them the ‘new oil’ of the 21st century. It is an essential item for the Apple iPhone. Last year, Apple also discussed supporting and promoting the manufacturing of semiconductor chips in India, so that chip manufacturing can start in the country as well.
2026 Milestone For iPhone
Apple, a major consumer of semiconductors with an estimated USD72 billion annual spend, relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC). With plans to shift 26% of its global production to India by 2026, India’s semiconductor industry stands to significantly benefit from Apple’s projected increased demand for chips in the coming years.
Apple Increased Exports In View Of Trump’s Tariffs
Notably, India’s iPhone exports reached USD 17.4 billion in 2024, driven partly by increased shipments to the US after the Trump administration announced reciprocal tariffs. Although electronic items were later exempted from these tariffs, other significant tariffs on Chinese goods remain in effect.
No Tax On Devices Made In India
Apple’s Indian manufacturing operations currently enjoy a US tax exemption, making India a strategically advantageous location. Analysts predict increased reliance on Indian-made products to supply the US market.
Will India Be Able To Become An Alternative To The Chinese Market?
India’s efforts to cultivate a robust domestic manufacturing sector for high-value products, such as iPhones, are showing results. Apple’s complete shift of iPhone production, including its top-tier models, to India is aided by government initiatives like the Production-Linked Incentive (PLI) scheme and a recent USD2.7 billion subsidy for electronics and semiconductor manufacturing. The PLI scheme provides financial incentives to companies to boost their production output.
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