Apple (AAPL) iPhone Production Soars as India Gains Prominence Amid Slowing U.S. Demand

Apple Inc. (NASDAQ:AAPL) is one of the most profitable consumer stocks to buy now. Apple significantly ramped up iPhone production in the first half of 2025, with output rising 53% year-over-year to 23.9 million units in India, according to new data from Canalys. The surge marks a strategic push ahead of the iPhone 17 launch and reflects growing reliance on India both as a manufacturing hub and an increasingly important end market.

Apple (AAPL) iPhone Production Soars as India Gains Prominence Amid Slowing U.S. Demand

A wide view of an Apple store, showing the range of products the company offers.

India now contributes approximately 16% to 17% of Apple’s global iPhone production, up from minimal levels just a few years ago, with projections suggesting it could hit 25% by 2027. The company has also been assembling high-end models like the iPhone 16 Pro in the country, underscoring a shift in its global production strategy. On the demand side, Apple has broken into the top five smartphone brands in India, with iPhone revenues up 28% year-over-year in Q1 2025, driven by rising premium adoption and financing offers.

However, the production boom comes at a time when growth in Apple’s core markets is softening. U.S. sales have been weighed down by lengthening replacement cycles and cautious consumer spending, while iPhone volumes in China have shown signs of decline. Despite these headwinds, Apple’s overall unit shipments rose 13% in Q1, outpacing the broader smartphone market.

As the company heads into earnings season, investors will be watching closely to see if this production momentum translates into real demand, especially in regions where Apple has recently lost ground.

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