Apple and Foxconn: A New Chapter in India's Tech Manufacturing Landscape

Strategic Manufacturing Shift Bolsters India's Position Amid Global Challenges

Foxconn's new iPhone manufacturing unit is currently being established at the Information Technology Investment Region (ITIR) in Devanahalli, a designated area for technology and manufacturing development, marking a significant development for the region.

Despite former President Trump's calls urging companies not to engage in operations in India, tech giant Apple appears to have disregarded those sentiments and is set to continue its manufacturing of iPhones within India. This strategic decision not only defies geopolitical pressures but also underscores India's growing importance in the global tech landscape.

Should Apple ultimately decide to relocate its manufacturing operations from India to the United States or another Western country, the company would likely encounter considerably higher production costs, which could impact its overall pricing strategy. This could also have significant implications for the Indian economy, affecting factors such as employment, foreign investment, and the country's position in the global tech manufacturing landscape.

May 17, 2025.

The Taiwanese electronics giant Foxconn's unit at the Information Technology Investment Region (ITIR) in Devanahalli, Bengaluru, is on the verge of launching, with commercial shipments of iPhones anticipated to commence as early as June. Foxconn plays a crucial role as the contract manufacturer for the iPhone. This development signifies not only a significant manufacturing achievement but also a strategic transformation for India, as it increasingly emerges as Apple's preferred production hub amid escalating geopolitical tensions and tariff challenges.

Furthermore, this progress not only elevates Karnataka's profile in the global manufacturing landscape but also lays the groundwork for heightened foreign investment, all while protecting the interests of various stakeholders involved. This pivotal moment arrives at a time when Apple has faced notable pushback in the U.S., particularly from U.S. President Trump, concerning its rapid expansion of manufacturing operations in India. The combination of these factors underscores the importance of this initiative for both Apple and the Indian economy.

U.S. President Donald Trump disclosed that he has strongly advised Apple CEO Tim Cook, "Do not proceed with the plans to build and expand the company’s manufacturing operations in India at this time. India can take care of themselves."

In response, Tim Cook expressed his curiosity, asking, "Why do you say that? The cost of production of a smartphone in India is Rs 1,000, while it stands at Rs 3,000 in the United States."

Cook later confirmed that a significant portion of iPhones sold in the United States during the June quarter will indeed be produced in India. He expressed immense pride in this remarkable achievement, stating that it represents a moment of great honour for both Karnataka and India as a whole. He went on to highlight the meaningful connection between Mysuru and Cupertino, emphasising the importance of this partnership in the global tech landscape.

Cook knows it's not easy to begin manufacturing iPhones in the US straightaway. It would take at least three years to do so.

Apple has successfully acquired 300 acres of land within the ITIR Industrial Area, located in Doddaballapura and Devanahalli Taluk of Bengaluru Rural District. In parallel, Foxconn has initiated the development of a mobile phone manufacturing facility in the Devanahalli Industrial Area, backed by a substantial capital investment of Rs 219,110 million. The company has disclosed that the Electronics System Design & Manufacturing (ESDM) initiative, a government-backed program to promote electronics manufacturing in India, will extend an incentive of Rs 69,700 million to support this venture.

Apple's decision to continue its operations in India, despite the strategic allure of moving production closer to Western markets, could have a significant impact on the Indian economy. In addition to its flagship iPhones, Apple has the opportunity to capitalise on collateral benefits, particularly in the realm of real estate. Whenever the company establishes its manufacturing units, it typically triggers an extraordinary boom in the real estate sector, a distinctive feature of the Indian economy that sets it apart from trends observed in other parts of the world.

For further context, iPhones valued at Rs 1.75 trillion were produced in India during the fiscal year 2025, which concluded in March, representing a significant increase from the Rs 1.2 trillion worth of iPhones manufactured the previous year. This growth underscores the rising importance of India in Apple's global supply chain and manufacturing strategy, a fact that should make every Indian proud of the country's growing influence in the tech industry.

Apple's commitment to expanding its manufacturing operations in India, highlighted by Foxconn's new facility in Devanahalli, marks a pivotal shift in the global tech landscape. Despite geopolitical pressures, this move not only enhances the regional economy but also sets the stage for significant growth in foreign investment, job creation, and real estate development. With commercial shipments of iPhones set to launch soon, India’s role as a crucial player in Apple's supply chain becomes increasingly evident.

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