Is Apple’s iPhone production in India more viable than China?

India's competitive edge makes it a natural choice for tech giants like Apple and the US-based company has assured the government of its commitment to manufacture its products and boost the 'Make in India' initiative. The country has shown big companies like Apple the value of "Make in India”, according to informed sources on Thursday. According to people close to the matter, “There is no change in Apple's investment plans in India”. 

Earlier, US President Donald Trump said that he told Apple CEO Tim Cook to give up his plan of setting up more manufacturing facilities in India and focus on building these plants in the US instead. “Apple will be upping its production in the United States,” Trump added during a meeting in Doha, Qatar. India has become a key hub for Apple's global supply chain in recent years. 

Union Communications Minister Jyotiraditya Scindia said earlier this month that global tech giants such as Apple see a lot of economic sense in setting up manufacturing facilities in India. “Apple has decided to source and produce all its mobile phones in India in the years to come. Because when you invest in India, you are choosing affordability, you are choosing reliability, you are choosing originality,” the minister remarked. 

Apple CEO Tim Cook recently announced that the tech giant will source the majority of its iPhones for the US market from India in the April-June quarter, while China will produce the devices for other markets. Apple registered the highest growth of 23 per cent among the top five brands in India in the January-March quarter, shipping a first-quarter record of three million units, an IDC report said on Monday. 

In the March quarter, iPhone 16 was the highest shipped model, accounting for 4 per cent of overall India shipments during Q1 2025. 

Prabhu Ram, VP at CyberMedia Research (CMR), told IANS that India is increasingly becoming a critical and strategic node in Apple's global supply chain — not just owing to its growing attractive domestic market, but also its expanding export capabilities and conducive policy environment. 

“With scalable, high-quality manufacturing, a skilled labor pool, and rapidly developing infrastructure, India is increasingly positioned as Apple's most viable alternative to China for both assembly and exports over the next decade,” he mentioned. 

Despite political push for US-based manufacturing, replicating Asia's strong ecosystem capabilities as well as tightly integrated supply chain in the US will remain a costly and complex challenge. 

“Most components would still need to be sourced from Asia, and any meaningful shift would require sustained investment over the next many years. In this context, India's role will continue to deepen, reinforcing its importance in Apple's global manufacturing and distribution strategy,” said Ram. 

(Except for the headline, this story has not been edited by DNA staff and is published from IANS)