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Apple expands iPhone 17 production in India to cut reliance on China: report

by August 19, 2025
by August 19, 2025

Apple Inc. is ramping up iPhone production in India across five factories, including two recently opened plants, in an effort to diversify its manufacturing footprint beyond China, Bloomberg reported, citing people familiar with the matter.

The company is assembling all four iPhone 17 models in India ahead of their expected debut next month.

This is the first time Apple will produce all new versions of its flagship device — including premium pro-level models — in India from the start.

Apple has steadily expanded its presence in India after moving much of its US-bound iPhone production out of China.

The move is aimed at reducing the impact of tariffs and trade disruptions, the report added.

Apple’s India moves

The latest expansion includes Tata Group’s facility in Hosur, Tamil Nadu, and Foxconn Technology Group’s site near Bangalore airport, both of which came online recently.

As per the report, Tata’s plants are expected to become increasingly important to Apple’s supply chain, potentially accounting for as much as half of India’s iPhone output over the next two years.

The geographical shift has already translated into higher export volumes.

Between April and July, iPhones worth $7.5 billion at factory gate prices were shipped out of India.

That pace marks an acceleration compared with the $17 billion worth exported during the entire previous fiscal year.

Apple expanded production in India earlier this year to cover most US demand, aiming to minimise the effect of Chinese tariffs.

The company recently disclosed that it expects a $1.1 billion headwind in the current period from tariff-related costs.

Navigating Trump’s tariffs

While the Trump administration has exempted iPhones from broad electronics tariffs, devices remain subject to certain country-specific levies.

Apple has had to adjust to the shifting US trade policy landscape, but the company remains committed to building India into a key manufacturing hub.

The company is also planning to produce a new iPhone 17e in India, expected to launch early next year as a successor to the iPhone 16e, as per the report.

Discussions are already underway regarding iPhone 18 production, with early work anticipated in the coming weeks.

Apple’s deeper push into India underscores its long-term strategy to reduce dependence on China.

Despite the Trump administration imposing 50% tariffs on India, partly in response to the country’s oil trade with Russia, iPhones have so far remained exempted.

Earlier this month, Chief Executive Officer Tim Cook said Apple would invest $600 billion to expand operations in the US over the next four years.

The pledge is seen as a part of Apple’s effort to ensure India-made iPhones continue to benefit from tariff exemptions.

Cook has previously said that a majority of iPhones sold in the US will eventually be sourced from India.

The post Apple expands iPhone 17 production in India to cut reliance on China: report appeared first on Invezz

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