The upcoming launch of the iPhone 17 this September marks a historic turning point for Apple.

The tech giant is accelerating its iPhone production shift to India, where five factories are currently operational, including two newly commissioned facilities. This strategic move aims to reduce dependency on China and mitigate risks from high tariffs imposed on exported goods.

According to Bloomberg, Apple will manufacture all four iPhone 17 variants in India before the official launch next month. This is the first time the entire iPhone lineup, including the high-end Pro models, will be shipped directly from India right from the start.

Key facilities participating in this production expansion include Tata Group’s plant in Hosur, Tamil Nadu, and Foxconn’s factory near Bangalore airport. Tata’s role is increasingly pivotal, with plans to account for up to 50% of iPhone output in India within the next two years.

In parallel with this geographic shift, iPhone exports from India have surged. Between April and July, iPhone exports totaled USD 7.5 billion - nearly half of the USD 17 billion from the previous fiscal year - highlighting the rapid expansion of production lines in the South Asian nation.

While Apple and Tata have declined to comment and Foxconn has not responded to inquiries, the trend is clear: since early this year, most iPhones sold in the US have been supplied by Indian factories, helping Apple mitigate the impact of tariffs linked to China.

Bloomberg reported that the highlight of the iPhone 17 strategy is a thinner model featuring a redesigned rear camera system with enhanced video recording and zoom capabilities. It also marks Apple’s first major design overhaul for its flagship line in five years. Additionally, Apple will manufacture the iPhone 17e in India - set to launch early next year as the successor to the iPhone 16e - and has already outlined plans for the iPhone 18.

Apple began assembling the iPhone SE in India back in 2017. By 2021, the company and its partners leveraged production-linked incentives introduced by Prime Minister Narendra Modi to expand operations. Today, Tata Group stands out as India’s only native iPhone assembler after acquiring Wistron’s plant in Karnataka and taking control of Pegatron’s facility near Chennai.

This expansion underscores Apple’s years-long effort to make India a cornerstone in its iPhone manufacturing strategy. Despite the US imposing a 50% tariff on goods from India, iPhones have so far remained exempt from the tax.

Apple CEO Tim Cook recently reaffirmed the company’s commitment to invest USD 600 billion in the US over the next four years, as part of efforts to persuade President Donald Trump’s administration to continue waiving tariffs on iPhones produced in India. Cook emphasized that in the near future, most iPhones sold in the US will be imported from India.

With this strategic shift, Apple is positioning India as a central hub in its global supply chain, gradually reducing reliance on China - which for years served as the brand’s exclusive manufacturing base.

Du Lam