A “Made in India” iPhone is on the horizon, but China remains a key player in the production landscape for now. Recent reports suggest that Apple is partnering with Foxconn and Tata Group to enhance manufacturing capabilities in India, aiming to assemble a significant portion of the 60 million iPhones sold annually in the US by 2026 or 2027. Early indications show that the production quality in India has reached a level similar to that of China. However, it is important to note that “Made in India” primarily pertains to final assembly.
Apple’s intricate global supply chain still relies heavily on sourcing essential components from China and other regions. While relocating final assembly significantly reduces the impact of tariffs on finished products, the dependency on external suppliers for crucial components persists. Furthermore, as highlighted by Bloomberg’s Mark Gurman, Apple’s push to manufacture in India mainly focuses on assembling existing iPhone designs. For new and complex devices, such as the anticipated foldable iPhone or a special Pro model for the iPhone’s 20th anniversary, Apple is likely to continue its collaboration with established partners in China.
The reason behind this decision is the challenge associated with mastering new parts and production techniques necessary for innovative designs, as Apple prefers to unveil major new product categories from its established manufacturing base in China. Presently, producing iPhones in India costs Apple about 5-8% more than in China. While establishing infrastructure poses challenges, competitors like Samsung have successfully implemented large-scale manufacturing in India, indicating potential for Apple’s long-term plans. For consumers, this means that while standard iPhone models may increasingly be assembled in India, groundbreaking new designs are likely to debut in China.
The dynamics of trade relations could influence the pricing and availability of these advanced models in the future.