After meeting with the Trump administration earlier this month and expanding its US manufacturing investment by $100 billion, Apple is now starting to manufacture its latest iPhones in India. These devices will be headed for the US and enable the firm to diversify its supply chain. The iPhones manufactured in India are purportedly the firm's iPhone 17 lineup, says a Bloomberg report, as it ramps up production ahead of next month's launch.
Apple Significantly Expands Indian Manufacturing Footprint As It Seeks To Reduce Reliance On China For US Goods
The report from Bloomberg shares that Apple is diversifying its production capacity in India ahead of next month's iPhone launch. The firm's next iPhone will purportedly be dubbed as the iPhone 17 and feature upgrades such as a redesigned thermal system and upgraded camera. Now, according to today's report, Apple is eager to ensure that it doesn't face any sales disruptions to its flagship product after its launch in September, as the firm has expanded its partnership with India's Tata Group as well as added a new Foxconn plant to its manufacturing portfolio.
While Apple is exempt from tariffs on its products courtesy of the Trump administration's acknowledgment of the firm's US investments, the firm has been diversifying its Chinese supply chain ever since the coronavirus pandemic disrupted the global supply chain. Its efforts to move away from China have also been met with hostilities by the Chinese government which has not only hindered Apple's efforts to move equipment outside from China but also recalled Chinese employees from India.
According to the report, Apple is expanding its iPhone production in India to cover five factories, which include two new plants operated by the Tata Group and Foxconn. The publication's sources add that among the two, Tata is expected to play a larger role as it will account for half of the India-based iPhone production. Tata Technologies shares closed 1.82% higher on the Indian stock market today and the firm appears to be the only local Indian company with exposure to Apple's iPhone manufacturing.
Not only is Apple manufacturing its upcoming iPhones for US exports in India, but the firm might also produce a new iPhone in the country next year. This device, called the iPhone 17e, will succeed the iPhone 16, with Bloomberg's sources adding that the American technology giant could even make the 2027 iPhones in India.
Crucially, Apple has also incurred additional costs by having to fly in engineers from Taiwan and Japan into India after Foxconn made its Chinese national employees fly back from India to China. Apple's shares have gained 13.8% since the firm announced an additional $100 billion in US investment which seeks to establish an end-to-end semiconductor supply chain in America.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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