US - spec iPhones to be fully "Made in India": Apple to transfer the entire production of the iPhone 17 series to India for the first time.
On August 20th, according to foreign media reports, Apple is expanding iPhone production in India to meet the demand of the US market. Currently, a total of five factories are in operation, including two newly launched bases.
People familiar with the matter revealed that Apple will produce all four iPhone 17 models in India and plans to start production before the product launch next month. This is the first time that all new iPhones (including the Pro series) will be produced in India and shipped directly to the US.
I. Betting on the Indian Market
Currently, Apple is relocating most of its iPhone production capacity for the US market to India to optimize the supply chain, avoid tariff risks, and further expand its global production layout.
This capacity expansion includes the Tata Group's factory in Hosur, Tamil Nadu, and Foxconn's newly built production base near Bangalore Airport. These two factories have recently started production. Notably, the Tata Group is expected to undertake half of the total iPhone production in India within the next two years.
With the adjustment of Apple's supply - chain geographical layout, the export value of iPhones from India has shown a significant increase. Since April this year, India has exported iPhones worth $7.5 billion, while the total iPhone export value in the previous fiscal year was $17 billion.
Currently, Apple produces a small number of standard - version iPhones in Brazil, mainly to meet the local market demand. However, reports indicate that Brazil may also be used by Apple as a strategic production base and may supply some low - end models to the US in the future.
Although it is uncertain whether all iPhones sold in the US will be made in India in the future, Apple is moving towards this goal. Even if some production capacity remains in China, the impact on its overall profit will be very limited.
Apple's core strategy for the iPhone 17 is to launch a new "stripped - down" model. Although its sales volume is estimated to be lower than that of the high - end Pro version, this product will play a key role in the overall marketing layout. This launch also marks Apple's first major design update for high - end iPhones in five years, introducing a new rear - camera system that significantly improves video shooting and zoom functions.
In addition, Apple also plans to produce the new model iPhone 17e in India. This model is expected to be launched early next year and will replace the current iPhone 16e. Apple has also initiated preliminary discussions on producing the iPhone 18 in India, and relevant work plans will be accelerated in the next few weeks.
II. The Strategic Position of "Made in India"
Apple's move to expand production in India further highlights the company's long - term goal of making India the core of its global iPhone manufacturing strategy. Apple CEO Tim Cook has publicly promised that most iPhones sold in the US market will be produced in India in the future.
In recent years, Apple has continuously expanded its supply - chain system in India. Apple is accelerating the diversification of its production layout. Now, India not only undertakes the manufacturing of iPhones but also gradually participates in the design, R & D, and testing processes.
Apple began to assemble the iPhone SE in India as early as 2017. In 2021, with the subsidy policy introduced by the government of Indian Prime Minister Narendra Modi, several of Apple's suppliers further expanded their local production scale.
Currently, the Tata Group has become the only iPhone assembler in India. At the end of 2023, the Tata Group acquired Wistron's Apple factory in Karnataka and also obtained control of Pegatron's factory near Chennai. In addition, Foxconn also has an iPhone production base in this region.
This article is from "Tencent Technology". Translated by Jin Lu, Edited by Helen. Republished by 36Kr with permission.