India assembles 1 in 4 iPhones, but how much of the product’s real value does it capture?

India's growing role in Apple's iPhone manufacturing is strengthening its position in global electronics supply chains, but assembling more devices does not automatically translate into capturing a larger share of their economic value.

Apple assembled an estimated 55 million iPhones in India in 2025, a 53% increase from the previous year, accounting for roughly a quarter of its global production, according to industry estimates. The expansion reflects Apple's efforts to diversify manufacturing beyond China amid US tariffs, geopolitical tensions and supply-chain risks.

However, an illustrative breakdown of a hypothetical $1,000 iPhone highlights the disparity between assembly and higher-value activities. Apple accounts for $450 through design, software and brand value, while Taiwan's chip suppliers contribute $150, South Korea's memory and display suppliers $90, Japan's camera systems $85 and US component firms $80. India and China each account for $30 through assembly.

The figures are illustrative estimates, not a verified breakdown of the costs or profits associated with a current iPhone model.

Assembly is only one part of the value chain

Foxconn, Tata Electronics and Pegatron are among the manufacturers supporting Apple's production expansion in India. The country now assembles multiple iPhone models, including premium variants, strengthening its role in Apple's global manufacturing network.

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US tariffs on Chinese goods and India's production-linked incentive (PLI) scheme have helped encourage the manufacturing shift. However, incentives and rising production volumes alone cannot establish how much economic value stays within India.

The domestic contribution also depends on local wages, supplier revenues, component sourcing, taxes and the extent to which Indian companies participate in higher-value manufacturing.

Component manufacturing holds the key

The iPhone value chain spans economies specialising in semiconductors, memory, displays and camera systems. These components can command substantial value because they require advanced technology, research, intellectual property and specialised manufacturing capabilities.

For India, expanding local sourcing beyond assembly could increase domestic value addition. Apple has been expanding local production of components such as batteries and enclosures, while its broader manufacturing ecosystem is extending to products such as AirPods.

Developing a deeper supplier base will require investments in technology, skills, infrastructure and production capabilities.

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Imports remain a challenge

India's electronics trade highlights the scale of the task. The supplied figures put electronics imports at $116 billion in the last financial year, against exports of $48 billion. These figures should be verified against official trade data before publication.

Apple's manufacturing expansion can support employment, exports and industrial capacity. But imported components can limit the value retained domestically.

The next phase of India's electronics strategy will depend not just on attracting assembly lines, but also on building component manufacturing, strengthening local suppliers and moving into more technology-intensive segments of the value chain.

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