All US-bound iPhone 17 models will be made in India
What's the story
Apple will manufacture all four models of its upcoming iPhone 17 series in India and ship them to the US, a Bloomberg report has said. This move is part of Apple's strategy to diversify its manufacturing base and reduce reliance on China, especially for the US market. While US President Donald Trump has imposed tariffs on India, iPhones have been exempt from these tariffs, allowing Apple to proceed with its plans.
Production
A look at the variants
The iPhone 17 series, which includes the standard iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and a new model called the iPhone 17 Air, will all be produced in India. This is the first time that all variants of an upcoming model are being produced in India from the start.
Strategic shift
Apple expands its manufacturing footprint in India
Earlier this year, Apple moved most of its iPhone production for the US market from China to India. The decision was made to avoid the impact of the US-China trade war. Now, the company is expanding its manufacturing footprint in India by utilizing five factories, including two recently opened ones.
Manufacturing partners
Growing partnership with Indian manufacturers
The expansion of Apple's iPhone production in India includes usage of plants owned by Tata Group in Hosur, Tamil Nadu, and Foxconn's facility near Bengaluru. According to Bloomberg, Tata-owned factories will account for nearly half of India's iPhone output over the next two years. This highlights the growing partnership between Apple and Indian manufacturers as part of its global supply chain strategy.
Export growth
Surge in iPhone exports from India
Apple's geographical shift has also resulted in a significant increase in the value of iPhones exported from India. In the four-month period starting in April, $7.5 billion worth of iPhones were exported from the country. This represents an accelerated pace of exports in comparison to the $17 billion worth of iPhones exported over the entire previous fiscal year, Bloomberg reported.
Tariff strategy
Apple's $100B investment plan to expand US operations
Despite the 50% tariffs imposed by Trump, Apple has managed to keep iPhones exempt. Earlier this month, CEO Tim Cook announced a $100 billion investment plan to expand operations in the US over four years. The move is part of an effort to persuade Trump not to impose tariffs on India-made iPhones.