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Apple wants to make more iPhones in India, but China pushes back: Report

Apple wants to make more iPhones in India, but China pushes back: Report

Apple is aiming to shift up to 50% of its iPhone production out of China, but logistical constraints and deliberate interference by Chinese authorities is making things difficult.

Business Today Desk
Business Today Desk
  • Updated Apr 25, 2025 6:07 PM IST
Apple wants to make more iPhones in India, but China pushes back: Report

Apple’s ambitious plans to reduce its dependence on China by moving a significant portion of its iPhone production to India are facing increasing resistance from both logistical constraints and deliberate interference by Chinese authorities.

According to a report by The Information, Apple is aiming to shift up to 50% of its iPhone production out of China, as tensions between Beijing and Washington continue to escalate. The US recently imposed a 125% tariff on Chinese-made goods, reinforcing the urgency for Apple and other tech giants to diversify their supply chains. While trading partners were granted a 90-day waiver, China remained excluded from the relief, further straining trade relations.

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India, with government support and growing local partnerships, has emerged as a leading contender to absorb some of Apple’s manufacturing operations. The company's local ties, including a growing partnership with the Tata Group, have also helped smoothen policy pathways and incentivise further investment.

However, despite its aggressive push, Apple’s shift to India has not been seamless.

Sources cited by The Information revealed that earlier this year, Chinese authorities refused to allow one of Apple’s equipment suppliers to export key manufacturing machinery to India. This equipment was required for trial production of the upcoming iPhone 17. In response, the vendor was reportedly forced to create a shell company in Southeast Asia to facilitate the transfer of the machines to Foxconn’s Indian facility.

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Apple continues to view India as a crucial strategic market, both for manufacturing and long-term growth. While China still accounts for nearly 80% of iPhone production, India’s role is expected to grow steadily, assuming the company can navigate both regional politics and operational hurdles.

Apple has yet to comment publicly on the recent developments.

Published on: Apr 25, 2025 6:07 PM IST
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