Apple is significantly increasing its manufacturing presence in India, with plans to produce all four iPhone 17 models in the country. This marks the first time Apple will manufacture all variations of a new iPhone in India right from the outset. The move is part of Apple's ongoing strategy to reduce reliance on China for U.S.-bound shipments, driven by tariff risks, geopolitical tensions, and a desire for supply chain diversification.
The iPhone 17 series is expected to be released in September 2025. To support this production shift, Apple is expanding across five factories in India, including recently opened facilities. Two key players in this expansion are the Tata Group and Foxconn. Tata's plant in Hosur, Tamil Nadu, and Foxconn's new hub near Bangalore airport are significantly contributing to the output. The Tata Group is poised to become a major Apple partner, with its facilities projected to handle nearly half of India's iPhone production within the next two years. In 2023, Tata acquired Wistron Corp's Apple production plant in Karnataka and also holds a controlling stake in Pegatron's plant near Chennai, Tamil Nadu.
Foxconn has already started small-scale production of the iPhone 17 at its Bengaluru factory, which is its second-largest manufacturing unit outside of China. This production is in addition to the iPhone 17 production at Foxconn's Chennai manufacturing unit. The company has invested nearly ₹25,000 crore to establish the Bengaluru factory.
Apple's increasing reliance on India is evident in the surge of iPhone exports from the country. Between April and July 2025, iPhone shipments from India reached $7.5 billion, which is almost half of the $17 billion exported in the entire previous financial year. In the 12 months ending March 2025, Apple assembled $22 billion worth of iPhones in India, accounting for 20% of global iPhone production. Apple's CEO, Tim Cook, noted that the majority of iPhones sold in the U.S. in June 2025 were assembled in India.
This strategic shift was initially triggered by COVID-19 lockdowns in China and has been further reinforced by ongoing trade tensions between the U.S. and China. While the Trump administration has largely exempted iPhones from sectoral tariffs, Apple still faces risks from individual country levies. To mitigate these pressures and secure stable production, Apple is recalibrating its supply chain. In an effort to maintain tariff exemptions for India-made iPhones, Apple has pledged a $600 billion investment in U.S. investments over four years.
Notably, China has reportedly discouraged technology transfers to India, leading Foxconn to replace hundreds of Chinese engineers at its Indian facilities with engineers from Taiwan and Japan, incurring higher costs. Despite these challenges, Apple's commitment to expanding its manufacturing footprint in India signals a significant long-term strategic move.
Furthermore, there are reports that Apple is planning to unveil a redesigned iPhone 17 lineup, potentially including a slimmer model and a new rear-camera system with enhanced video recording and zoom capabilities. The company is also expected to manufacture a new lower-end iPhone 17e in India, with a launch anticipated early next year. Canalys reported that in Q2 2025, India has overtaken China as the leading source of smartphones shipped to the U.S..
