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Apple's India Revenue Hits $9B: Manufacturing Boom

"Apple's India Revenue Hits $9B: Manufacturing Boom" cover image

Apple's India strategy reads like a billion-dollar masterclass in strategic patience and calculated risk-taking. The nearly $9 billion in Indian revenue for fiscal 2025 isn't just another earnings milestone—it's proof that sometimes the best moves happen when everyone else thinks you're late to the party.

Here's what makes this story fascinating: Apple isn't just selling more iPhones in India, they're fundamentally rewiring their entire global manufacturing playbook. One in every five iPhones is now manufactured in India, while iPhones now make up around 7% of all smartphones in India according to Counterpoint Research. That dual success—building local manufacturing capacity while growing market share—is exactly the kind of strategic positioning that separates Apple from companies just chasing quarterly numbers.

The timing couldn't be more strategic. While most of the world is hitting a slowdown in smartphone demand, India's still moving, creating the perfect storm for Apple's expansion. But let's break down what's really happening behind these numbers.

Why India became Apple's billion-dollar bet

Apple's India expansion isn't just about tapping into a growing market—it's about solving multiple strategic challenges simultaneously. India stands as Apple's fourth-largest market globally in 2024, trailing only the US, China, and Japan. But here's where it gets interesting: the manufacturing story happening alongside the sales growth tells us Apple is thinking way beyond just market entry.

Consider these numbers: Apple assembled $22 billion worth of iPhones in India in the 12 months ended March, increasing production by nearly 60% over the previous year. That's not incremental growth—that's industrial transformation happening in real-time. Currently, one in every five iPhones is manufactured in India, with five factories in India working on iPhone production, including two new ones.

The economics behind this expansion reveal why Apple is betting so heavily on India. India's labor costs are nearly 50% lower than China's, with wages in manufacturing hubs like Tamil Nadu averaging $5,000 annually versus $10,000 in Shanghai. Add India's Production Linked Incentive (PLI) scheme to the mix, and you've got a manufacturing environment that's both cost-effective and government-supported—a combination that's increasingly rare in today's global economy.

But here's the really ambitious part: Apple and its suppliers aim to reach 32% of global iPhone production in India by 2026-27. Think about that for a moment—India would handle roughly one-third of all iPhone manufacturing globally, a massive shift from just five years ago when India barely registered in Apple's supply chain.

The manufacturing partnerships scaling to support this growth show how seriously Apple is taking this transition. Tata Electronics acquired Wistron's iPhone facility in Karnataka's Narsapura for $125 million, contributing approximately 26% of India's total iPhone output. Meanwhile, Foxconn has invested over $1.5 billion in India, building capabilities that simply didn't exist in India's tech manufacturing landscape until recently.

From retail expansion to manufacturing powerhouse

Apple's retail strategy perfectly complements its manufacturing ambitions, creating a virtuous cycle that benefits both local demand and global supply chains. Apple opened two new stores in Bangalore and Pune this week, adding to the flagship stores that Tim Cook visited India and cut ribbons for in Mumbai and New Delhi in 2023. The expansion isn't stopping there—there are plans to open another store in Noida and one more in Mumbai sometime early next year.

This retail push addresses one of Apple's biggest challenges in India: making premium pricing work in a price-sensitive market. Prices in India for entry-level iPhones are steep due to taxes; the iPhone 16 base model goes for 79,900 rupees ($906), which is actually higher than US prices. But Apple's response shows exactly why they're masters at market adaptation: Apple offers student discounts, trade-ins for older phones, and partner deals with banks to reduce costs.

The strategy is clearly working. Since its first flagship stores opened in 2023, Apple has used trade-in offers, student discounts, and bank rebates to attract more middle-class buyers. The digital engagement metrics tell an even more compelling story: on average, more than 22 million users visited the India App Store each week in 2024—double what it was three years ago.

What's particularly smart about Apple's approach is how they're building both local demand and global supply capacity simultaneously. Local manufacturing helps reduce costs for the Indian market while creating export capacity for global markets. It's a dual-purpose strategy that maximizes both market penetration and supply chain diversification benefits—exactly the kind of thinking that makes Apple's strategy so effective.

The bigger picture: Supply chain diversification

Apple's India expansion represents something much bigger than market growth—it's strategic risk management for their entire global operation. About 20% of iPhones are made in India, across five factories, including two that opened recently, but this diversification comes at a critical time as China-related risks intensify across multiple dimensions.

The numbers from China tell the story of why Apple needed alternatives. Apple's smartphone shipments in China fell 17% year-over-year, dropping from 51.8 million units in 2023 to 42.9 million in 2024. Even more concerning for Apple's long-term China strategy, the company's Chinese market share has contracted dramatically, falling to 15% in China, behind Huawei's 16% and top-ranking Vivo's 17%.

This shift goes beyond manufacturing—it's about fundamental supply chain restructuring that protects Apple's entire business model. Apple aims to source from India the more than 60 million iPhones sold in the U.S. annually by the end of 2026, which would require more than doubling iPhone assembly in India. When you consider that currently, roughly 80% of the iPhones sold in the U.S. are made in China, this potential shift becomes strategically massive.

The global trade dynamics already reflect this change happening in real-time. India overtook China to become the top exporter of smartphones to the US, with smartphones assembled in India accounting for 44% of US imports in the second quarter. That's not just about Apple, but Apple's India manufacturing growth is a significant driver of this trend—and it shows how individual company strategies can reshape entire global trade flows.

Manufacturing partnerships are scaling rapidly to support this diversification. Foxconn has invested over $1.5 billion in India, while Tata Electronics acquired Wistron's iPhone facility in Karnataka's Narsapura for $125 million, contributing approximately 26% of India's total iPhone output. These aren't just assembly operations—they represent serious industrial capacity building that creates genuine alternatives to China-based manufacturing.

What this means for Apple's future

The trajectory Apple has established in India points to something bigger than just another successful market expansion. Looking at the projections, by 2026, India is projected to produce 32% of global iPhones, up from 17-18% in 2024. That's not incremental change—that's a fundamental shift in global iPhone production geography that will reshape how we think about tech manufacturing.

The export numbers show this transformation is already underway. India's smartphone exports surged to $7.5 billion in April-July 2025, nearly half of the $17 billion exported in the entire 2024 fiscal year. Apple's iPhone production is a major driver of this growth, demonstrating how the company's India strategy benefits both Apple's risk management and India's broader economic development goals.

Beyond hardware manufacturing, Apple's ecosystem growth in India creates long-term value that compounds well beyond device sales. Billings and sales facilitated by the App Store in India amounted to more than ₹44,447 crore ($5.31 billion) in 2024, showing how Apple is building a comprehensive digital economy presence that creates multiple revenue streams and deeper customer relationships.

The global reach of India-based development shows this isn't just about local market penetration. India-based developers reaching a global user base through more than 755 million app downloads worldwide, with 87% of developers in India active on multiple storefronts and close to 80% of their App Store earnings coming from users outside of India.

What makes Apple's India success particularly significant is the timing. India becomes a key market at a time when Apple faces slowing smartphone demand in other regions, positioning the company's India growth as not just diversification, but as a critical growth engine for the next decade. The manufacturing scale-up creates a foundation for sustained growth that goes beyond current market dynamics, with by 2026-27, India's PLI ecosystem could generate $27 billion in market value.

Bottom line: Apple's India success story demonstrates how strategic patience, local partnerships, and market adaptation can transform both challenges and opportunities into billion-dollar results. What started as a market entry strategy has evolved into a comprehensive manufacturing and ecosystem play that positions Apple for sustainable growth in the world's most populous democracy. As global supply chains continue to evolve and geopolitical tensions reshape manufacturing geography, Apple's India investments look less like diversification and more like essential infrastructure for the company's next decade of growth.

PRO TIP: For investors and industry watchers, Apple's India strategy offers a masterclass in how to turn regulatory challenges and geopolitical risks into competitive advantages. The key lesson? Sometimes the best time to double down on a market is when everyone else thinks you're too late to the game.

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