Apple has significantly ramped up its iPhone production in India, a strategic move coinciding with escalating trade tensions between the United States and India. The expansion, affecting five factories, primarily involves facilities belonging to the Tata Group and Foxconn, a major Apple contractor. This surge in production is in preparation for the upcoming launch of the highly anticipated iPhone 17 series. Reports suggest Apple is also planning to introduce a new iPhone 17e model in India next year, further solidifying its commitment to the Indian market.
The timing of this production boost is noteworthy, given the recent threats of increased tariffs from the US government on India. Treasury Secretary Scott Bessent publicly criticized India for its purchase and resale of discounted Russian oil, accusing the nation of “profiteering” during the ongoing Ukraine conflict. These accusations follow President Trump’s earlier decision to increase tariffs on Indian goods to 50% and a warning of potentially even higher tariffs if a peace deal in Ukraine isn’t reached.
Apple’s shift towards increased Indian production is part of a broader strategy to diversify its manufacturing base and reduce its dependence on China. This strategy gained momentum amidst growing trade friction between the US and China. May’s data from Canalys highlighted the substantial growth in iPhone shipments from India to the US, a 76% increase, underscoring the importance of this production shift.
However, Apple’s significant investment in US manufacturing may provide a buffer against potential penalties. The company has pledged over $600 billion in US investments over the next four years, including a recent $100 billion expansion that earmarked $2.5 billion for Corning, a key supplier of iPhone glass. This substantial commitment to American manufacturing could mitigate the risk of US tariffs levied against India, where Apple is now focusing a substantial portion of its production efforts.
