Apple is significantly expanding its iPhone production within India, with plans to utilize five separate manufacturing facilities as part of a broader initiative to decrease reliance on China for the production of devices destined for the US market. As a key milestone, all four iPhone 17 models will be manufactured in India in anticipation of their launch next month.
This expansion includes the incorporation of new plants operated by the Tata Group in Tamil Nadu and Foxconn near the Bangalore airport. It’s projected that the Tata-controlled facilities will contribute to approximately half of India’s total iPhone output over the next two years.
Between April and July, India shipped $7.5 billion worth of iPhones, an increase compared to the $17 billion shipped throughout the prior fiscal year. Recent data indicates that India has taken the lead over China in smartphone manufacturing for the United States.
The shift in production strategy is in response to the impact of tariffs. Apple CEO Tim Cook previously pledged a substantial investment of $600 billion in the United States over a four-year span, partially to secure exemptions for India-produced iPhones. Despite tariffs imposed by the US, electronics have not been affected. Meanwhile, China is reportedly hindering technology transfers to India, and Foxconn has recalled numerous Chinese engineers from its Indian facilities. The expansion into India took place because of the US tariffs on China, with extra tariffs putting India at a disadvantage. Apple is expanding despite challenges from tariff changes.