Apple is boosting its iPhone production capabilities in India, with a move to spread operations across five factories. This is part of a strategic effort to diminish its reliance on China for the manufacturing of iPhones destined for the United States. For the first time, all four versions of the upcoming iPhone 17 will be assembled in India, preparing for their release next month.
The expansion incorporates new facilities under the Tata Group in Tamil Nadu and Foxconn near Bangalore. Tata-affiliated factories are expected to manage approximately half of India’s overall iPhone output within the next two years.
From April to July, $7.5 billion worth of iPhones were exported from India. This is a significant increase compared to the $17 billion shipped during the whole previous fiscal year. A recent report suggested that India has now surpassed China as the principal manufacturer of smartphones for the U.S. market.
The shift in production strategy comes as Apple responds to the implications of tariffs. CEO Tim Cook previously announced a $600 billion investment in the United States over a four-year period, partially to secure exemptions for India-made iPhones. While tariffs have been implemented, electronics have not yet been targeted. Simultaneously, China has reportedly taken measures to hinder technology transfer to India, and Foxconn has recalled numerous Chinese engineers from its Indian facilities. This expansion into India has happened despite complications. Apple’s expansion happens even amid challenges caused by tariff changes.