Apple Inc. has made significant adjustments to its global supply chain, shifting production of all four iPhone 17 models to India in preparation for next month’s new product launch.
According to reports from Bloomberg and multiple media outlets, this marks the first time Apple’s new iPhone lineup has been shipped from India, signaling a rapid decrease in the company’s reliance on the Chinese supply chain following the impact of the pandemic and pressures from Trump’s tariffs.
Apple is expanding iPhone production at five factories in India, including the Tata Group factory in Hosur, Tamil Nadu, and a new Foxconn (Hon Hai) factory near Bangalore Airport.
To mitigate the impact of tariffs, Apple had already shifted most of its iPhone production capacity for the US market from China to India earlier this year and increased the number of iPhone factories in the country.
Based on factory shipment prices, the export value of iPhones from India has significantly increased to $7.5 billion within a four-month period starting from April this year, compared to just $1.7 billion in the previous fiscal year.
Reports indicate that Tata Group is rapidly becoming a key partner for Apple in India.
The group not only acquired the Wistron factory in Karnataka but also holds a stake in the Pegatron factory near Chennai.
Sources revealed that production from factories under Tata’s control is expected to account for half of India’s iPhone production in the next two years, highlighting its growing role in Apple’s supply chain.
During its recent financial report announcement, Apple stated that it anticipates an increase of approximately $1.1 billion in costs this fiscal quarter due to tariffs.
Apple CEO Tim Cook pledged earlier this month to invest $600 billion in the US over the next four years to expand the company’s operations and persuade Trump to continue granting tariff exemptions for iPhones manufactured in India.
Bloomberg noted that the strategic focus of the Apple iPhone 17 series is on a new lightweight model that, while expected to have lower sales volumes than the Pro version, will be a key marketing point.
Additionally, this high-end iPhone generation will see its first significant design update in five years. The flagship iPhone 17 Pro and 17 Pro Max are expected to see major upgrades in camera features, including a horizontal camera module, an 8x optical zoom telephoto lens, a higher resolution front camera, a top-mounted camera control button, and a built-in app with professional-grade photography and video capabilities.
Sources also revealed that Apple plans to produce the iPhone 17e in India, with the model expected to be released early next year to replace this year’s iPhone 16e. Discussions on the production plan for the iPhone 18 have already begun, with preliminary preparations set to start in the coming weeks.
Reports also indicated that Chinese authorities have instructed relevant departments to limit the export of technology and equipment to India and Southeast Asia to prevent manufacturing transfers. As a result, Foxconn has requested hundreds of engineers to return from India to China.
Sources stated that in order to maintain production capacity, Apple has reassigned engineers from Taiwan and Japan to provide support, despite higher costs, ensuring that overall production progress remains on schedule.
Apple first assembled the iPhone SE in India in 2017 and expanded production in 2021 utilizing Prime Minister Narendra Modi’s subsidy policies. With deepening collaboration with Tata Group, India’s position in Apple’s global supply chain is rapidly rising.