India: iPhone production in full swing – all new models from the subcontinent
Despite resistance from China, there are now five factories in India that build iPhones. The local Tata Group in particular is benefiting.
Apple CEO Tim Cook and Indian head of state Modi: subcontinent as the "new China".
(Image: dpa, Government Of India/Handout)
Apple has ramped up its production in India as far as possible in time for the start of sales of the iPhone 17 next month. The local production partners are now operating five factories spread across the country, reports the financial news agency Bloomberg. This practically means that all four expected new iPhone models – iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max and the particularly thin iPhone 17 Air- will come from the subcontinent right at the start of sales. In the past, Apple initially only had more complex models assembled in China.
Tata Group takes over half of production
According to the report, the plan is to manufacture as many of the new iPhones intended for the US market as possible in India in order to avoid higher tariffs imposed by the Trump administration on Chinese products. Apple CEO Tim Cook had reached an agreement with the White House on this. However, new disputes are looming between the USA and India due to the latter's purchase of Russian raw materials. According to Bloomberg sources, deliveries from South East Asia will begin soon.
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Only recently, two more factories were launched: one by the local Tata Group in Hosur (Tamil Nadu) and one by Taiwanese Apple main manufacturer Foxconn near the airport in Bengaluru (Karnataka). The Tata Group in particular, a multinational corporation that produces almost everything from machines to cars in India, is benefiting from Apple's manufacturing expansion. According to the report, half of the iPhone factories planned on the subcontinent over the next two years are in its possession – in terms of output. This is all the more astonishing given that the company lacks experience in iPhone production, while Foxconn is used to building factories for Apple in new regions – such as Brazil.
Strong acceleration in production sales
In the four months since April 1, iPhones worth 7.5 billion US dollars have left Indian factories. This shows the direction: In the last fiscal year, the total was only 17 billion dollars. Nevertheless, Apple expects to have to spend around 1.1 billion dollars on customs duties in the current quarter. However, according to the current deal with the Trump administration, iPhones and other electronic products from India do not fall under the so-called sector tariffs, which actually cover all products.
It is also exciting that Apple has apparently managed to manufacture the iPhone 17 Air in India – despite it being a very complex product due to its thin design. The company had recently had to contend with the Chinese government, which had banned some of the country's citizens from traveling to India to help Apple set up the factory. Most of the raw materials required for the iPhone still come from the People's Republic, as this is where Apple's suppliers are based. However, more and more components are also to be produced locally, at least those for which this is comparatively less complex.
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