Apple Expands Indian iPhone Factories as Exports Hit $7.5B

Apple Inc. is significantly ramping up iPhone manufacturing in India, operating from five plants — including two newly established factories — as part of its ongoing efforts to reduce dependency on China for U.S.-bound iPhone models.

According to sources familiar with Apple’s strategy, the company is producing all four iPhone 17 models in India, ahead of their official debut next month. This marks a historic first, as every new iPhone variation — including the premium Pro models — will ship from India from day one.

Why Apple Is Expanding iPhone Manufacturing in India

Shifting from China to India

Apple has shifted a major portion of its U.S.-bound iPhone production to India, a move designed to lessen tariff impacts and ensure supply chain stability amid ongoing U.S.-China trade tensions.

The expansion highlights Apple’s multi-year strategy of making India the cornerstone of its iPhone production base.

New Manufacturing Facilities

• Tata Group’s Hosur plant (Tamil Nadu) and Foxconn’s new hub near Bangalore airport have recently come online.

• Tata’s growing role as a core Apple partner could see its facilities producing up to 50% of India’s iPhones within the next two years, according to insiders.

Apple’s Export Growth from India

Apple’s geographical diversification has already paid off.

• Between April and July, iPhone exports from India reached $7.5 billion at factory-gate value.

• This reflects strong momentum, compared with $17 billion worth of iPhones exported during the entire previous fiscal year.

Apple and Tata declined to comment on production expansion, while Foxconn has not responded to inquiries.

Navigating Tariffs and Trade Challenges

Apple’s Tariff Headwinds

Earlier this year, Apple expanded Indian iPhone production to cover most of U.S. demand, as tariffs on Chinese exports continued to rise.

The company said it faces a $1.1 billion tariff headwind in the current quarter, reinforcing the urgency to shift manufacturing out of China.

Though the Trump administration exempted iPhones from sectoral tariffs, they remain vulnerable to country-specific levies. Apple is navigating this constantly shifting tariff landscape while keeping India central to its long-term supply chain strategy.

Apple’s iPhone 17 Strategy

New Slimmed-Down Model

A News agency reports that the iPhone 17 lineup will include a new slimmed-down version, which, while not expected to outsell the Pro models, will play a central role in Apple’s marketing strategy.

For the first time in five years, Apple is meaningfully redesigning its flagship devices, featuring:

• A new rear-camera system

• Vastly improved video recording and zoom capabilities

India-Made iPhone 17e

Apple is also planning to manufacture a new iPhone 17e in India, set for launch early next year as a successor to the iPhone 16e.

Moreover, discussions are already underway for iPhone 18 production in India, with early groundwork expected to begin soon.

Apple’s Broader Strategic Moves

Tim Cook’s Commitment to the U.S.

Apple CEO Tim Cook recently pledged a $600 billion investment in U.S. operations over the next four years, aiming to secure exemptions for India-made iPhones from potential tariffs.

Cook confirmed that a majority of iPhones sold in the U.S. will soon be imported from India.

China’s Pushback

Meanwhile, China has attempted to slow Apple’s diversification, encouraging regulatory agencies to restrict technology transfers and equipment exports to India and Southeast Asia.

Foxconn even recalled hundreds of Chinese engineers from its India plants, replacing them with higher-cost engineers from Taiwan and Japan. Despite this, insiders say production remains on track.

India’s Rising Role in Apple’s Supply Chain

Apple began testing iPhone assembly in India in 2017 with the SE model. In 2021, suppliers expanded production under Prime Minister Narendra Modi’s state subsidies.

• Tata Group has since become India’s only domestic iPhone assembler.

• Tata acquired Wistron Corp.’s iPhone factory in Karnataka in 2023.

• It also gained a controlling stake in Pegatron Corp.’s Chennai plant, complementing Foxconn’s own iPhone manufacturing facilities nearby.

This expansion solidifies Tata’s dominance in Apple’s Indian supply chain and positions India as a key global hub for Apple’s future growth.

Key Takeaways

• Apple is producing all four iPhone 17 models in India for the first time.

• $7.5 billion worth of iPhones were exported from India in just four months, signaling rapid growth.

• Tata Group plants are set to handle up to 50% of India’s iPhone output within two years.

• Despite tariff headwinds and geopolitical challenges, Apple’s India-first production strategy is on track.

• Apple is already planning iPhone 18 manufacturing in India.