Producing all iPhone 17 models slated for September release will be carried out by Apple in India.
Apple, the tech giant, is ramping up its production of the upcoming iPhone 17 in India as part of a strategic move to mitigate tariff-related costs and secure its supply chain amid ongoing US-China trade tensions.
The rapid pace of this production shift is evident in the figures, which show that over the past year, $22 billion worth of iPhones have been assembled in India. In fact, India now accounts for 20% of global iPhone production. This significant increase has led to iPhone exports from India reaching $7.5 billion in the four months starting April.
The decision to relocate iPhone 17 production to India was initially triggered by strict COVID-19 lockdowns in China. Since then, Apple has expanded iPhone production to five factories in India, including two recently opened plants.
The Indian company Foxconn is expected to produce the largest quantity of iPhone 17 and Pro models in the future, with production taking place primarily in the Tamil Nadu region of India. Foxconn Technology Group's hub near Bangalore airport will also contribute to iPhone production.
Indian conglomerate Tata Group will handle up to half of India's iPhone output over the next two years. Production for Tata Group will take place at their Hosur facility in Tamil Nadu.
Apple anticipates a $1.1 billion headwind from tariffs in the current period. While electronics like iPhones are generally exempt from sectoral US tariffs, individual country levies and ongoing US-China trade tensions have created financial risks for Apple.
The intensification of this production shift amid trade uncertainties reinforces India's position as a key manufacturing hub for Apple. Apple's strategy for the iPhone 17 production is aimed at meeting the majority of US demand from India, rather than China.
This move is a significant step for Apple as it will manufacture all iPhone 17 models, including the Pro versions, in India for the first time. The pivot to India's iPhone production is expected to help Apple in managing costs and navigating the complexities of international trade.
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