India’s electronics manufacturing industry is undergoing a structural shift, moving from low-end assembly to becoming a critical node in global supply chains. Government initiatives like the production-linked incentive (PLI) scheme have served as a much-needed strategic push for self-reliance in the sector, drawing participation from major players in smartphones, semiconductors and consumer technology. Apple Inc. is now deeply embedded in India’s manufacturing and electronics retail landscape, and gradually expanding its presence across the broader value chain.
Company profile
Apple, founded in 1976, is best known for its tightly integrated ecosystem of hardware, software and services. This multinational technology company designs, develops and sells consumer electronics, computer software and online services. Its products are known for user-centricity, aesthetically pleasing design and multiproduct integration.
Product portfolio
As of 2025, Apple’s product portfolio in India spans a robust line-up of hardware, software and services. The company’s latest offering is the iPhone 16 series, ranging from the entry-level 16e to the high-end 16 Pro Max, with the ultra-thin iPhone 17 “Air” and other models expected by fall this year. Its Mac range includes MacBook Air/Pro, iMac, Mac Studio and Mac Pro. iPads comprise the base model, Air, Mini and Pro, with M5-powered Pro variants due later this year. Apple Watch continues with Series 11, Ultra 3 (featuring 5G and satellite), and SE 3. In audio and accessories, AirPods Pro 3, a refreshed HomePod Mini, and a smart home hub are on the horizon.
On the software front, Apple’s ecosystem runs on iOS, macOS, watchOS and the newly introduced visionOS, now unified under the “26” naming series. Services like Apple Music, iCloud, TV+ and Pay remain key revenue drivers. Apple Intelligence, its artificial intelligence (AI) suite, is deeply woven into all platforms, enhancing communication, search and personalisation.
Expanding India footprint
In India, Apple’s footprint has rapidly expanded over the years, turning the country into both a key growth market and a vital manufacturing base. Much of Apple’s local assembly is concentrated in South India. Foxconn, one of its largest contract manufacturers, operates a major facility in Sriperumbudur, Tamil Nadu, producing iPhone models, including the iPhone 14, 15 and 16 series. Foxconn is also investing in new sites at Devanahalli near Bengaluru and Kongara Kalan in Telangana, signalling a scale-up in capacity.
Apple has strengthened its partnership with Tata Electronics in India, following the latter’s acquisition of Wistron’s plant in Narasapura, Karnataka, which now manufactures iPhones. It is now building an iPhone assembly hub in Hosur, Tamil Nadu. Meanwhile, electronics manufacturer Pegatron runs its factory in Singaperumal Koil near Chennai, focusing on entry-level iPhones.
The ancillary parts supply ecosystem is also growing steadily – Jabil in Pune makes AirPods components, Foxlink in Andhra Pradesh manufactures charging cables, and companies like Flex, Molex, Salcomp and Sunwoda handle batteries, chargers and subcomponents across Karnataka, Maharashtra and Tamil Nadu.
On the corporate side, Apple’s operations span Bengaluru, Hyderabad, Mumbai and Gurugram. Its Bengaluru hub oversees engineering and regional strategy, while Hyderabad handles Apple Maps and spatial data. In Gurugram, the focus is on enterprise sales and policy, and the Mumbai office manages marketing and retail. Apple Operations India, its research and development (R&D) subsidiary, now plays a core role in hardware design, testing and component development.
Retail is growing, too. With flagship stores now open in Mumbai and Delhi, Apple is gearing up to expand further with new outlets in Borivali, Pune, Bengaluru and Connaught Place by the end of 2025.
Recent developments
Apple has launched the “Shop with a Specialist over Video” service in India, only the second country to get this service, allowing customers to connect with Apple Store team members via secure video calls to explore products, financing options and support.
Meanwhile, the company has expanded its Apple Intelligence features globally with iOS 18.4, iPadOS 18.4 and macOS Sequoia 15.4, including support for localised English in India and Singapore. Users can now rewrite, proofread and summarise text, use Genmoji and Image Playground, and access Smart Reply and Clean Up tools. Siri and Writing Tools now integrate ChatGPT, enabling smoother multitasking without switching apps.
Further, it has launched the Apple Store app in India, offering users a personalised and seamless shopping experience for Apple’s full product and service line-up. Available nationwide, the app features tabs like “For You” for tailored recommendations and “Go Further” for set-up support and tips. Customers can customise Macs and engrave products like AirPods and iPads in eight languages. The app also supports flexible delivery and in-store pick-up options. Users can access programes such as Apple Trade In, financing, and Today at Apple sessions.
Contribution to PLI
Apple has become a major beneficiary of India’s PLI scheme, which aims to ramp up domestic manufacturing, boost exports and cut reliance on imports. Under this scheme, contract manufacturers receive financial incentives of 4-6 per cent on incremental smartphone sales over a five-year period. This has helped bring down production costs, making iPhones assembled in India more competitive in global markets.
The results speak for themselves. In 2024-25, Apple reportedly exported iPhones worth a record Rs 1.5 trillion (free on-board value), a 76 per cent jump year on year. This figure is more than double the company’s committed PLI target of Rs 749 billion for the year, underscoring the growing scale of its India operations.
Monthly shipments in 2024-25 averaged Rs 125 billion, up sharply from Rs 70.83 billion the year before. Apple is currently estimated to account for nearly 75 per cent of India’s total smartphone exports, according to industry estimates. “India was among over two dozen countries where Apple recorded all-time high revenues in the June quarter of 2025,” Tim Cook, chief executive officer, Apple, noted in the company’s latest quarterly results. However, as concerns mount over escalating US tariffs on Indian goods, it remains to be seen what effect it would have on Apple’s India presence. For the moment, though, Cook confirmed plans to expand Apple’s retail footprint in the country.
Financial results
Apple posted a record performance in the June 2025 quarter, driven by double-digit growth in iPhone, Mac and services revenue. The company saw broad-based gains across all geographic segments, including the Americas, Europe and Asia Pacific. Consolidated revenue rose to $23.43 billion as of June 28, 2025, up from $21.44 billion as of June 29, 2024. Operating expenses also increased, reaching $15.51 billion compared to $14.32 billion in the previous period. Net sales, which came from a mix of iPhones, Macs, iPads, wearables, home products, accessories and services, totalled $94.03 billion, up from $85.77 billion year-on-year. The Americas remained Apple’s strongest market, accounting for the largest share of overall sales. Among all product categories, iPhones continued to lead in sales across all regions.
In sum
While some US policymakers continue to raise an alarm about offshoring, the current trajectory of global supply chains and Apple’s moves suggest that India’s role in iPhone production is likely to only grow. When comparing total establishment and manufacturing costs, India has a significant edge. The estimated assembly cost per unit in India is $15-$25, compared to $70-$85 in the US. This means producing iPhones in India can be three to five times cheaper than in the US.
What this really means is that India is becoming a strategic pillar in Apple’s global operations. The combination of rising exports, policy tailwinds and deepening investments in various components – from R&D to retail – shows Apple’s India bet is robust. With 75 per cent of India’s smartphone exports now tied to Apple, and a growing local component ecosystem taking shape, the country is shifting from being a passive market to an active node in Apple’s supply, innovation and growth engine.
Add to that a young, tech-savvy consumer base, improving infrastructure and the government’s aggressive push for self-reliance in electronics, and India looks increasingly like the second home Apple has long needed beyond China.
Harshita Kalra
