Apple relocates iPhone production: New factories in India

iPhone production is changing. Until now, most devices came from factories in China, but Apple is increasingly turning to India as a new manufacturing location. Two new assembly plants, one owned by Tata Electronics and one by Foxconn, will produce some of the iPhones in the future. This is not just an economic decision, but also a political response to pressure from the US.

Apple has been under scrutiny by the US government for years due to its dependence on China. Especially under the Trump administration, pressure to bring production back to the country increased. While Apple is currently exempt from tariffs on Chinese imports, this could change. Therefore, the company is responding and aims to become more independent from China. A key part of this strategy is expanding iPhone production in India.

Tata Electronics starts with older iPhone models

A few days ago, Tata Electronics began operations at a new iPhone factory in the city of Hosur in the southern Indian state of Tamil Nadu. There, older iPhone models are assembled on an assembly line. Production is not focused on the latest model, but rather on generations that continue to be in demand—for example, in emerging markets or as cheaper alternatives on the global market. The Hosur site is a first step toward shifting capacity away from China. This will allow Apple to respond more flexibly to potential trade conflicts while simultaneously benefiting from the more favorable production conditions in India.

Foxconn plant in Bengaluru to produce iPhone 16

Still under construction but close to starting production is another assembly plant – this one from the Taiwanese contract manufacturer Foxconn. The plant is located in Bengaluru in the state of Karnataka and is part of a $2.6 billion investment. According to several sources, including a government official, the plant is scheduled to begin assembly in the next few days. The goal is to produce current models, specifically the iPhone 16 and iPhone 16e. The facility is designed for a capacity of approximately 300 to 500 devices per hour. By the end of 2027, the site is expected to create around 50,000 jobs across various production functions. The plant thus complements Foxconn's existing network in India and is a clear signal that Apple is planning for the long-term relocation of production.

iPhone production for the US market moves to India

Apple is apparently planning to manufacture a large portion of the iPhones it sells in the US in India rather than China starting next year. This will reduce the company's exposure to potential tariffs or other political interventions. There is an expectation in the US – particularly from the Trump administration – that Apple will eventually manufacture iPhones directly in America. However, reports say this is only realistic once Apple has suitable robotic arms and technologies for automated production in its own country. Apple is currently also investing in the US. A separate investment of around $500 billion over four years is expected to create 20,000 new jobs there. Nevertheless, it seems clear that India will play a larger role in global iPhone production in the future (via Reuters).

Apple is increasingly relying on India for iPhone production

Apple is significantly expanding iPhone production in India. Two new factories – Tata Electronics in Hosur for older models and Foxconn in Bengaluru for current models – are intended to help reduce its dependence on China. Political pressure from the US, rising labor costs in China, and strategic risk mitigation are the main reasons for this development. The relocation of production particularly affects devices for the US market, but in the long term, European and other markets could also receive iPhones made in India. For Apple, this is a step toward greater flexibility – and for the industry, a sign that India is becoming increasingly important as a manufacturing location. (Image: Shutterstock / Ritesh Ranjan Sett)