Apple is significantly expanding its iPhone production in India, with plans to manufacture all iPhone 17 models, including the Pro versions, in the country. This move marks the first time that all new iPhone variations will be manufactured in India from the start. The shift is part of Apple's broader strategy to reduce its reliance on China for US-bound shipments and mitigate risks associated with tariffs and geopolitical tensions.
Production Expansion and Key Partners
Apple is expanding iPhone 17 production across five factories in India. Two of these facilities have recently started operations: Tata Group's plant in Hosur, Tamil Nadu, and Foxconn's hub near Bengaluru airport. Tata Group is emerging as a key partner for Apple and is expected to handle nearly half of India's iPhone production within the next two years. Foxconn has also started rolling out iPhone 17 units at its new $2.8 billion facility in Devanahalli, near Bengaluru, which is its second-largest iPhone factory outside China.
India's Growing Role in iPhone Exports
India's iPhone exports have already seen a significant boost. Between April and July 2025, iPhones worth $7.5 billion were shipped from India, compared to $17 billion for the entire previous fiscal year. The United States has become the primary destination for these exports, reflecting Apple's strategic diversification. In the second quarter of 2025, smartphones assembled in India accounted for 44% of US imports, surpassing China for the first time.
iPhone 17 Series and Expected Features
The iPhone 17 series is expected to bring noticeable changes, including a slimmer model positioned as the face of Apple's marketing campaign. The Pro versions are expected to have their most substantial redesign in years, with camera upgrades, improved video recording, and better zoom capabilities.
Plans for iPhone 17e
Apple is also reportedly working on a new, more affordable iPhone 17e, which is likely to debut in early 2026. The iPhone 17e is rumored to launch in Spring 2026. Some sources predict a launch as early as February 2026, while others suggest a slightly delayed release in 2027. The iPhone 17e is expected to come with an A19 chip and may integrate the C2 5G modem. It is also expected to have a 6.1-inch OLED display, and may feature Dynamic Island.
Motivations Behind the Shift
Apple's increasing focus on India is driven by several factors. The company aims to reduce its dependence on China, particularly for devices bound for the US and other key markets. This diversification strategy helps Apple navigate an uncertain US trade environment and mitigate risks associated with tariffs on Chinese goods. While iPhones have so far been shielded from blanket tariffs, Apple wants to be better prepared by diversifying its production base. The shift also aligns with CEO Tim Cook's pledge of $600 billion in US investments over four years, partly to maintain exemptions for India-made iPhones.
Challenges and Future Outlook
Despite the rapid growth of iPhone production in India, some challenges remain. India's manufacturing ecosystem is less mature than China's, with supply chain inefficiencies and a less experienced workforce. However, Apple's commitment to expanding its operations in India signals a long-term strategy to diversify its manufacturing footprint and establish India as a major hub in its global production ecosystem.
