Apple Shifts iPhone Assembly To India; Samsung Adds ₹1,000 Cr Investment, 100 Jobs

As trade tensions between the United States and China persist, Apple is laying the groundwork to shift the assembly of most iPhones sold in the US to India by 2026. This move could double Apple’s current output from the South Asian nation, reducing its reliance on China, where 80% of the 60 million iPhones sold in the US are currently produced.

The $3 trillion tech major is reportedly in discussions with key manufacturing partners in India, including Foxconn and the Tata Group, according to reports. Apple’s expansion in India is already visible – shipping iPhones worth $2 billion in March alone, a record for both Tata and Foxconn.

India’s appeal as a manufacturing hub has grown under Prime Minister Narendra Modi’s policies, including recent import duty exemptions on mobile components. Analysts say these measures are aimed at improving cost competitiveness and attracting global manufacturers.

Apple assembled approximately $22 billion worth of iPhones in India in the year ending March 2025, a 60% increase from the previous year. Yet, India still accounts for only 20% of global iPhone production.

Not That Easy

The transition, however, comes at a cost. According to reports that producing iPhones in India is 5–8% more expensive than in China. Experts like Dan Ives of Wedbush Securities note that while the move is strategic, it will take years to significantly reduce Apple’s dependence on China due to the complexity of iPhone component sourcing and assembly.

Complicating matters further, reports suggest Chinese authorities have obstructed Apple suppliers looking to shift operations to India, delaying shipments and denying export applications. Meanwhile, concerns persist about whether India’s infrastructure can support the anticipated surge in production. Experts cite traffic, logistics, and energy reliability as ongoing challenges.

Despite these hurdles, Apple’s plans to increase iPhone assembly in India could result in production reaching 70–80 million units annually by 2026. Nearly 80% of Apple’s current Indian output is exported, and the country could soon supply the majority of iPhones sold in the US.

According to IDC India, Apple currently produces 40–43 million iPhones annually in India, accounting for about 17–20% of its global shipments. Officials told ET that the Indian government is committed to supporting this scale-up, seeing it as a major boost for the electronics manufacturing ecosystem.

Industry executives believe India could manufacture up to 40% of global iPhones in the next 18 months, provided it addresses cost inefficiencies and policy uncertainties. The India Cellular and Electronics Association (ICEA) notes that India still faces a 7–7.5% cost disadvantage compared to Vietnam and China, largely due to tariffs and tax structures.

A NITI Aayog report also emphasizes the need to rationalize tariffs and taxes to align with competing manufacturing hubs. Apple’s vendors exported iPhones worth nearly ₹1.5 lakh crore in FY25, up from ₹85,000 crore in FY24—highlighting India’s growing role in the company’s global supply chain.

However, experts caution that the success of Apple’s shift depends heavily on India securing a favorable bilateral trade agreement with the US. Any softening of Trump-era tariffs on China could slow the momentum.

As Apple prepares to release its earnings this Thursday, its India strategy marks a significant realignment in the global electronics manufacturing sector – one that positions New Delhi as a serious contender to Beijing.

Samsung to Invest ₹1,000 Crore More in Tamil Nadu’s Sriperumbudur Plant, 100 New Jobs Expected

Samsung Electronics will invest an additional ₹1,000 crore in its manufacturing facility at Sriperumbudur, near Chennai, Tamil Nadu Industries Minister TRB Rajaa announced on Friday. The new investment is expected to generate around 100 fresh jobs, which the minister said reflects the company’s continued confidence in the state’s workforce.

The decision comes despite ongoing labour unrest at the facility, where the South Korean electronics major has faced protests over wage issues, union representation, and working conditions. The Sriperumbudur plant, which manufactures televisions, refrigerators, and washing machines, has witnessed two significant standoffs in less than a year.

In February, a wave of worker suspensions triggered renewed protests – just months after a five-week strike in September where hundreds of employees demanded wage hikes and official recognition of their union. That strike ended with Samsung agreeing to meet several worker demands.

The announcement aligns with Tamil Nadu’s recent industrial growth, illustrated in the 2025–26 policy note from the state’s Industries, Investment Promotion and Commerce Department. Between May 2021 and March 2025, Tamil Nadu secured investment commitments worth ₹10.14 lakh crore, creating 3.2 million jobs across key sectors including automobiles, semiconductors, textiles, non-leather footwear, and food processing.

Tamil Nadu currently leads the country in operational factories, with 31,517 units, ahead of Maharashtra’s 20,739. The state’s manufacturing sector contributed 11.8% to India’s total manufacturing Gross Value Added (GVA) during FY23–25, according to the policy note.

The Last Bit

With the United States under Donald Trump tightening tariffs and intensifying its trade war rhetoric – especially with China – India is increasingly emerging as a strategic alternative for global manufacturing.

The shift in global value chains, triggered by tariff uncertainties and rising geopolitical risks, has prompted several multinational companies to reevaluate their supply chain dependencies. Hence, India, with its large labour force, improving infrastructure, and a government keen on positioning the country as a global manufacturing hub, is now gaining traction as a preferred destination.

Tech giants like Apple and Samsung to electronics manufacturers and auto component makers, many are doubling down on India as part of their “China+1” strategy, cementing the country’s rising relevance on the global industrial map.