- Apple to ship all iPhone 17 models simultaneously from India and China.
- Tata and Foxconn boost India’s role, with iPhone exports hitting $7.5B.
- Shift aims to cut reliance on China and offset US tariffs on Chinese goods.
Apple will signify a pivotal moment with the release of the iPhone 17. For the first time, the company will deliver all models at once from both India and China, highlighting its efforts to lessen reliance on Chinese production. This milestone comes after years of slow growth in India, where production previously trailed China by weeks.
The change stems from Apple's consistent investment in India's manufacturing sector. Recently, two new factories have launched, increasing the total number of iPhone manufacturing facilities in the nation to five.
Tata Group and Foxconn are at the forefront of this growth, with Tata projected to represent almost 50% of India’s iPhone production in the upcoming two years. In April for four months, India exported iPhones worth $7.5 billion, showing its growing importance in the supply chain of Apple.
This method fits perfectly into Apple's goal of making 50% of all iPhones in India by 2027. In 2021, China made 99% of iPhones worldwide. By the previous year, that number had decreased to 81%, with India assuming a progressively larger portion of production.
Bloomberg states that Apple has successfully reached its objective of simultaneous production, with all iPhone 17 models, including the pro variants, planned to be shipped from India and China at the time of launch. The decision is also influenced by tariffs on Chinese goods imposed by the US government. By shifting a more significant portion of production to India, Apple keeps exporting tariffs at bay and strengthens its supply chain in the US.
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The expansion includes facilities in Hosur, Tamil Nadu, and also near the airport in Bangalore. As reported by Bloomberg, Apple and Tata chose not to comment, and Foxconn did not reply to inquiries.
The attempt to diversify has encountered some friction. China has resisted technology transfers to India, and Foxconn has withdrawn certain Chinese engineers from its Indian factories. Apple has reacted by sourcing substitutes from Taiwan and Japan, maintaining production schedules even with increased expenses.
Apple’s decision indicates more than merely a supply chain alteration. It signifies a realignment of worldwide production due to geopolitical instability, with India becoming the focal point of its iPhone approach.