Apple Expands iPhone 17 Production In India To Reduce China Dependence

Apple Inc is ramping up iPhone production in India, with plans to assemble all upcoming iPhone 17 models, including the premium Pro versions, at five local factories, according to a Bloomberg report citing sources.

This marks the first time every new iPhone variant will be manufactured in India from launch.

Two of the newest facilities, Tata Group’s plant in Hosur, Tamil Nadu, and Foxconn’s hub near Bengaluru airport, are central to the expansion.

Tata, which has quickly become Apple’s fastest-rising partner, is expected to handle nearly half of India’s iPhone production within two years, people familiar with the matter said.

The move is part of Apple’s broader strategy to reduce reliance on China for US-bound shipments and protect itself from tariff risks. The diversification reflects concerns over ongoing trade tensions between Washington and Beijing.

India has already emerged as a key hub in Apple’s supply chain. Between April and July 2025, India shipped iPhones worth $7.5 billion, nearly half the value of the $17 billion exported during the entire previous fiscal year.

Rising US Exports

The United States has become Apple’s largest export destination from India. According to data from Canalys, the US share of iPhone shipments rose from 53% in the first half of 2024 to 78% by June 2025.

Despite Washington’s rhetoric, Apple’s India shift has strengthened exports while positioning the company to mitigate trade risks.

Apple estimates a $1.1 billion hit from tariffs in the current period, underscoring the urgency of its diversification.

The Trump administration has imposed steep tariffs on Chinese goods as part of its trade policy. While the US has so far spared smartphones from blanket tariffs, President Donald Trump has repeatedly criticised American firms for relying on China.

In one of his recent statements, Trump said, “If Apple wants to make iPhones for Americans, they should be making them in America, not in China, not in India.”

Despite this, Apple has pressed ahead with its India expansion, balancing domestic political pressures with the realities of global supply chains.

Analysts note that Apple’s deeper push into India signals both long-term strategic planning and short-term responses to trade uncertainty.

The company’s investments have boosted India’s export profile while supporting local manufacturing capacity.

Tata and Foxconn are driving large-scale production, and India is playing an increasingly pivotal role in Apple’s global supply chain, reinforcing its importance beyond a mere alternative to China.

Also Read: India’s Textile Exports Rise 5.37% In July Despite Global Trade Uncertainties