Apple Expands iPhone Production in India with Billions in Investments

Apple Inc. is intensifying its efforts to shift production away from China, focusing on India as a new manufacturing hub. According to recent reports, the tech giant's key partners are investing significantly in establishing new iPhone manufacturing facilities in the country, with one factory already operational.

The Tata Group has commenced operations at its new plant located in southern India, which is expected to start delivering iPhones as early as May. Initially, the factory will focus on producing older iPhone models. However, Apple is also ramping up production of its high-end models on the subcontinent, with manufacturing timelines now just weeks after initial production in China.

In addition to Tata, Foxconn is rapidly constructing a new facility in Bengaluru, with a projected investment of $2.6 billion. A preliminary production line is already set to go online shortly, with an anticipated output of 300 to 500 iPhones per hour, including the latest iPhone 16 and the newly announced 16e. Once fully operational, the Foxconn facility is expected to create around 50,000 jobs, with completion targeted for December 2027.

While neither Tata, Foxconn, nor Apple has commented on the latest developments, the shift in production is notable. Currently, 75% of all iPhones are manufactured in China, but Apple aims to reduce this figure to 50% in the near future. The company plans to manufacture as many iPhones as possible for the U.S. market in India, anticipating lower tariffs compared to those imposed on Chinese goods.

In March, approximately $2 billion worth of iPhones were exported from India to the United States, transported via air freight in a significant logistical operation. However, Apple faces challenges in establishing its Indian manufacturing base, including restrictions from Beijing on the export of production equipment, which could delay the process.

While the U.S. government, under previous leadership, expressed a desire for Apple to establish manufacturing within American borders, the practicality of such a move remains in doubt. Reports suggest that Apple is still awaiting critical robotic equipment necessary for assembling iPhones domestically.