Apple shifted a significant portion of iPhone production outside of China last year, yet had to pay extra fees to carry out this process.

The company has reached an important milestone in its goal to split iPhone production equally between China and India.

Apple's 50/50 Goal

Most iPhones are still assembled in China, but Apple has been trying to increase the number of phones produced in other countries for years. India is the company's secondary production hub, and it is reported that Apple aims to reach 50% of its iPhone production there.

The company has also successfully completed a significant step in this process: the simultaneous production of the iPhone 17 series in both India and China. In previous models, production was only initiated in China, leaving India behind.

The import tariffs imposed by the U.S. on Chinese-made products provided an additional incentive for Apple to accelerate its process of reaching this goal; the company aims to produce all U.S. iPhones in India.

Reportedly Reaching 25% on the Way

There have been reports for some time that Apple is approaching its 25% target, and this is supported by a new Bloomberg report.

Apple increased its iPhone production in India by approximately 53% last year and is now producing a quarter of its flagship devices there […] Apple produces about 220 million to 230 million iPhones worldwide each year and assembled about 55 million iPhones in India in 2025, a significant increase from 36 million units a year earlier.

Apple Pays Extra Fees

The report states that despite having to pay extra fees to assemble iPhones in India, the company has reached this milestone.

Apple is trying to negotiate additional tax incentives to balance these costs. It achieved significant success by avoiding tax liabilities on the production equipment it provides to local contract manufacturers.

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