India has achieved a significant milestone in global technology manufacturing by exporting iPhones valued at $50 billion over the last five years, fueled primarily by Apple’s belated diversification from China. Recent reports highlight how Apple’s suppliers in India have substantially increased output to satisfy rising worldwide demand, with exports accelerating due to ongoing geopolitical tensions and supply chain restructuring.
“The journey began modestly in fiscal year 2020, when iPhone exports from India were virtually nonexistent. By fiscal 2025, however, the figure had skyrocketed, with Apple shipping out devices valued at over $16 billion in just the first nine months alone. This exponential growth is not merely a statistical blip but a testament to concerted efforts by both the Indian government and Apple to build a robust ecosystem. The PLI [Production Linked Incentive] scheme, introduced in 2020, offers financial incentives to manufacturers meeting production targets, effectively luring giants like Apple, Foxconn, Pegatron, and Wistron to expand operations in states such as Tamil Nadu and Karnataka.”
Industry analysts point out that Apple’s move is part of a broader “China Plus One” strategy, aimed at mitigating risks from U.S.-China trade frictions and potential disruptions. In India, this has translated into massive investments in assembly lines and component sourcing. For instance, Foxconn’s mega facility in Devanahalli near Bengaluru has significantly boosted output, contributing to a growth rate that saw premium iPhone models accounting for 75% of smartphone exports from the country.
The PLI scheme has been pivotal, disbursing incentives that have propelled Apple’s three main vendors to dominate the payout landscape, receiving about 75% of the total funds allocated for smartphones. This has not only accelerated exports but also fostered job creation, with estimates suggesting over 350,000 direct and indirect positions generated in the sector.
Apple’s pivot to India is deeply intertwined with global geopolitical dynamics. Rising tensions between the U.S. and China, including tariffs imposed during the Trump administration and sustained thereafter, have prompted companies to diversify. India, with its vast workforce and improving infrastructure, has emerged as an attractive alternative.
MacDailyNews Take: The less dependence on Chinese Communist Party-controlled China, the better.
Sped up by the Trump admin’s trade policies, the days of China being “the factory of the world” are ending – and that, in the long run, is a Very Good Thing™. – MacDailyNews, August 19, 2025
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