Apple is aggressively scaling its iPhone production in India amidst rising tensions between the US and China. As part of a broader strategy to diversify its supply chain, Apple is increasing its manufacturing footprint with two new assembly plants—one by Tata Electronics and another by Foxconn.
Currently, India hosts three iPhone assembly plants: two in Tamil Nadu and one in Karnataka. Tata Electronics has already kicked off production at its new Hosur facility in Tamil Nadu, focusing on assembling older-generation iPhones. Meanwhile, Foxconn, Apple’s largest contract manufacturer, is gearing up to launch a major facility in Bengaluru, which will be dedicated to the production of the iPhone 16 and iPhone 16e models.
Expanding the Footprint: A $2.6 Billion Investment
The Foxconn plant in Bengaluru represents a significant commitment, with a $2.6 billion investment expected to bring substantial benefits. The facility aims to manufacture between 300 and 500 iPhones per hour, generating up to 50,000 jobs by the time construction is completed in 2027.
This facility is not just a manufacturing hub—it’s part of Apple’s effort to shift a significant portion of its global iPhone production away from China, mitigating the impact of tariffs that have been imposed due to the ongoing trade conflict between the US and China.
Shifting Production to India: Why It Matters
With tariffs on China-made products escalating, Apple is pivoting its operations. The company aims to assemble iPhones in India to reduce tariff costs, particularly for models sold in the US. This strategy could be key to reducing the financial burden on Apple, which has faced significant supply chain disruptions in the past.
However, Apple might face challenges with future models, especially with complex designs like the iPhone 18 and the rumoured foldable iPhone. Gurman notes that while older models like the iPhone 16 are feasible for production in India, newer designs may encounter difficulties, as Apple has historically reserved China for the initial production of completely new iPhone designs.
The Road Ahead for Apple in India
Apple’s manufacturing expansion in India underscores the company’s desire to diversify its production, reduce reliance on China, and navigate the complexities of the global tariff environment. As the company ramps up its local operations, it faces a delicate balance between scaling up production and ensuring it can manage more complex models in the future.
Will Apple succeed in making India a key manufacturing hub for its most advanced devices? Only time will tell, but the shift already promises to create a more robust and diversified supply chain for the company.
