Apple is significantly expanding iPhone production in India, reducing its reliance on China. The company has begun producing all four iPhone 17 models at five factories, including new ventures by Tata Group and Foxconn. This marks the first time that all new models for the US will be made in India from the start, Bloomberg reports.
According to sources, within two years, Tata companies will provide up to half of all Indian iPhone production. At the same time, smartphone exports from the country are growing rapidly: in just the four months from April, products worth $7.5 billion were shipped, while in the entire previous year - $17 billion.
Apple is taking the step to cushion the impact of tariffs on Chinese goods. While the Trump administration has exempted iPhones from general tariffs for now, the company is operating under ever-changing trade rules. Apple expects to take an additional $1.1 billion in tariffs this quarter.
The new flagship model will be the slim iPhone 17 Air, while the Pro models will get a significantly upgraded camera system. In addition, the iPhone 17e will begin production in India in early 2026, followed by the iPhone 18 later.
Apple has been gradually expanding its presence in India since 2017, and has been increasingly moving production out of China since the pandemic and trade wars. The company now not only assembles smartphones, but also designs and tests them locally.
CEO Tim Cook has pledged to invest $600 billion in Apple's US operations to maintain incentives for Indian iPhones. Most models sold in the US market will already be manufactured in India.