Apple Expands iPhone Production in India: A Bold Shift in Strategy

Apple is set to manufacture all iPhone 17 models in India, including premium Pro variants, marking a first for the company. This expansion, involving five factories, including facilities from Tata Group and Foxconn, reduces reliance on China amid tariff and geopolitical risks. India's exports have surged, with iPhone shipments worth $7.5 billion between April and July 2025. The U.S. remains Apple's largest export market. This strategic shift strengthens Apple’s supply chain resilience and highlights India's growing role in global tech manufacturing.

Apple is making significant strides in diversifying its production network, with plans to assemble all models of the upcoming iPhone 17 in India. This groundbreaking move, reported by Bloomberg citing insider sources, marks the first instance where every variation of a new iPhone lineup, including the top-tier Pro models, will be manufactured in India right from the start.

A Strategic Pivot Toward India

The decision to ramp up production in India reflects Apple’s broader strategy to reduce its reliance on China for manufacturing, particularly for U.S.-bound shipments. This shift aims to shield the tech giant from potential tariff risks and geopolitical uncertainties. Over the past few years, Apple has been steadily transitioning a substantial portion of its production for the American market from China to India.

Two facilities are at the heart of this expansion: Tata Group’s newly operational plant in Hosur, Tamil Nadu, and Foxconn’s hub near Bengaluru airport. Tata Group, a rising star among Apple’s manufacturing partners, is reportedly on track to handle nearly half of India’s iPhone production within the next two years, according to individuals familiar with the plans.

Boosting India’s Export Economy

Apple’s manufacturing shift has already had a noticeable impact on India’s export performance. Between April and July this year, India exported iPhones worth $7.5 billion—a significant jump compared to $17 billion for the entire previous fiscal year. These figures showcase how India is becoming an increasingly important player in the global tech supply chain.

Navigating U.S. Trade Challenges

Apple’s decision comes against the backdrop of a challenging trade environment in the U.S. While smartphones like the iPhone have largely escaped blanket tariffs, former President Trump frequently criticized American companies for their heavy reliance on Chinese manufacturing. In one of his sharpest remarks, he stated, “If Apple wants to make iPhones for Americans, they should be making them in America, not in China, not in India.”

Despite such political rhetoric, Apple anticipates a $1.1 billion impact from tariffs this year, underscoring the urgency of its efforts to diversify production. India has emerged as a key export hub for Apple’s products, with the U.S. being its largest destination. According to Canalys, the U.S. accounted for 78% of Apple’s shipments from India by June 2025, up from 53% in the first half of 2024.

A New Chapter in Apple’s Global Strategy

By deepening its manufacturing roots in India, Apple is not only mitigating risks associated with its reliance on China but also tapping into one of the world’s fastest-growing economies. With the iPhone 17 production ramping up across five local factories, including two newly established facilities, Apple is signaling its commitment to India as a vital partner in its global operations. This move not only strengthens Apple’s supply chain resilience but also positions India as a critical player in the tech manufacturing ecosystem.

As Apple continues to evolve its production strategies, India’s role in the company’s journey is set to grow even more prominent in the years to come.