Apple to build all iPhone 17 models in India
Apple is accelerating its shift away from China by expanding iPhone production in India, with five factories — including two recently opened plants — now manufacturing the company’s flagship device. For the first time, all four models of the upcoming iPhone 17 will be assembled in India ahead of their global launch next month, marking a major milestone in Apple’s diversification strategy.
India at the Center of iPhone 17 Production
According to people familiar with the matter, the full iPhone 17 lineup, including Pro-level models, will ship from India from day one. The move significantly reduces Apple’s dependency on Chinese factories for devices destined for the U.S. market, where tariffs and trade uncertainty have complicated supply chains in recent years.
The expansion builds on Apple’s recent efforts to relocate the bulk of U.S.-bound iPhone manufacturing to India. Among the newly active facilities are Tata Group’s plant in Hosur, Tamil Nadu, and Foxconn Technology Group’s hub near Bangalore airport. Tata, in particular, is set to play a pivotal role: its plants are expected to account for as much as half of India’s iPhone production within the next two years.
Rising Export Value
The value of iPhone exports from India has surged alongside this manufacturing push. Between April and July alone, Apple shipped $7.5 billion worth of iPhones out of the country, measured at factory gate prices. That compares to $17 billion exported over the entire previous fiscal year, reflecting Apple’s accelerating pivot.
This shift has been partly driven by tariffs on goods produced in China. While iPhones have been exempt from certain U.S. trade levies so far, Apple continues to brace for potential policy shifts. The company recently flagged a $1.1 billion tariff-related headwind this quarter, underscoring the urgency of its diversification efforts.
New Models, New Strategy
Apple’s iPhone 17 lineup will feature a new slimmed-down model as the centerpiece of its marketing strategy, alongside redesigned Pro versions boasting an upgraded rear-camera system for improved photography and video. While the slimmer model may not outsell its Pro counterparts, it represents Apple’s first meaningful iPhone redesign in five years.
Looking ahead, Apple is also preparing to produce the iPhone 17e in India, scheduled for release early next year, and has already started early planning for iPhone 18 manufacturing in the region.
India’s Growing Role in Apple’s Supply Chain
Apple’s commitment to India goes beyond assembly. The company now engineers, develops, and tests iPhones locally, building on Prime Minister Narendra Modi’s subsidy programs that encouraged foreign tech giants to expand production. Tata Group has emerged as Apple’s primary local partner, after acquiring Wistron Corp.’s operations in Karnataka in 2023 and securing control of Pegatron Corp.’s facility near Chennai.
Meanwhile, China has sought to slow the manufacturing exodus. Authorities have reportedly pressured local agencies to discourage technology transfers and limit equipment exports to India and Southeast Asia. Foxconn has also recalled hundreds of Chinese engineers from its Indian facilities, forcing Apple to deploy replacements from Taiwan and Japan.
Balancing Global Trade Pressures
The geopolitical backdrop remains complex. President Donald Trump’s administration has slapped 50% tariffs on Indian goods in response to the country’s Russian oil imports, though iPhones have so far avoided penalties. To safeguard exemptions, Apple CEO Tim Cook has pledged $600 billion in U.S. investments over the next four years, while reiterating that most iPhones sold in the U.S. will soon be imported from India.
Apple first tested Indian assembly with the iPhone SE in 2017, but production has rapidly scaled since the pandemic exposed vulnerabilities in China’s supply chain. Now, with multiple high-capacity plants online and export volumes soaring, India is poised to serve as the cornerstone of Apple’s global iPhone strategy.
