Apple is expanding its iPhone manufacturing in India, with Bloomberg reporting that the company plans to produce more of its iPhone 17 models there, rather than in China. For the first time, the entire lineup of new iPhone models destined for the United States will be shipped from India at launch. In addition, Apple is reportedly preparing a successor to the iPhone 16E, which it also plans to manufacture in India.
This marks a significant step in Apple’s ongoing strategy to diversify its production away from China, where it has historically concentrated most of its iPhone assembly.
Growing shift away from China
Apple’s decision comes as the company seeks to reduce its reliance on China for manufacturing. The firm already expects to pay around US$1.1 billion in tariffs for the current quarter. However, according to Bloomberg, exports of iPhones from India to the US are currently exempt from tariffs.
This exemption remains in effect despite the Trump administration’s 50% tariff on many imports from India. Industry analyst Patrick Moorhead observed that the shift “does dodge some tariffs.” However, he also highlighted that most iPhone subassemblies are still produced in China and then transported to India for final assembly.
I will be super impressed when Apple builds its subassemblies in India. For now, they’re mostly done in China, exported to India for final assembly.
— Patrick Moorhead (@PatrickMoorhead) August 19, 2025
This does dodge some tariffs and likely results in some Indian consumer love.
It’ll be interesting how China reacts. pic.twitter.com/7rNzJA9sA0
By relocating a significant portion of its final production to India, Apple gains a degree of insulation from the ongoing trade disputes, while also bolstering its presence in one of the world’s fastest-growing smartphone markets.
US investment and rising tariff tensions
Earlier this month, Apple announced a US$100 billion investment in American manufacturing, building on a previously announced US$500 billion commitment earlier this year. Former President Donald Trump has said that companies investing in US-based production would be exempt from future tariffs on imported chips.
Despite this, tensions between Washington and New Delhi remain high. US Treasury Secretary Scott Bessent told CNBC on Tuesday that the administration plans to raise tariffs on India. He stated that the decision is linked to India’s ongoing purchase and resale of Russian oil, despite Western sanctions imposed following Russia’s war in Ukraine.
The combination of new tariffs, shifting trade policies, and Apple’s push to diversify its supply chain underscores how geopolitical pressures are reshaping global technology manufacturing. While Apple continues to expand its footprint in India, it faces a delicate balancing act between political pressures in the United States, tariff risks, and its long-standing reliance on Chinese suppliers for critical components.
