China's Export Curbs Threaten Apple's Manufacturing Plans As Firm Shifts US iPhone Production To India: Report
By: ABP Live Business via MSN
Is that a green shoot? A number of news outlets are reporting that Apple is scaling up production of iPhones in India for export to the US to circumvent the tariffs on China. China is throwing up one of those overlooked trade barriers by impeding export of the manufacturing equipment in an effort to retain monopoly control over iPhone production. (Will China ultimately nationalize Apple's operations in China? Own the factory, own the market?)
Maybe Trump doesn't have plan. Maybe Trump doesn't know what he is doing. But apparently it's working.
S E E D E D C O N T E N T
Apple has launched trial production for its iPhone 17 series in India as part of a bold strategy to shift all US-bound iPhone manufacturing out of China by the end of 2026. However, the tech giant’s ambitions are encountering fresh obstacles from Beijing.
Industry executives and analysts revealed that Chinese authorities are increasingly delaying or blocking the export of essential manufacturing equipment needed to scale up production efforts in India, reported Moneycontrol.
The plan involves relocating the production of more than 60 million iPhones annually to Indian facilities, enough to cover the entire US market, the report noted citing sources in the know.
While The Financial Times was the first to report on Apple's strategy, sources have provided further insights into the company’s ongoing trial runs and long-term production targets.
"Apple recently sent 1.5 million iPhones from India to the US via chartered cargo flights to avoid tariff-related costs. This was not just to avoid tariffs but also to assess whether Indian manufacturing could meet sudden surges in demand. The trial was viewed positively within the company, and now, Apple aims to fulfil all US iPhone demand from its Indian facilities," the report said citing a source familiar with the development.
Despite positive trial results, the final shift will depend heavily on ongoing trade negotiations involving the US and China, the source noted. Apple's teams are maintaining close coordination with Indian authorities, but uncertainties remain due to external political dynamics.
India Ramps Up Production Capacity Amid External Challenges
Foxconn’s new plant in Bengaluru is expected to become operational this month, with a projected peak capacity of producing 20 million iPhones annually. Currently, India accounts for about 18–20 per cent of global iPhone output, a share that analysts believe could climb to 25–30 per cent as soon as 2025.
“To raise the share of global production to say 40 per cent by next year from the current 17–18 per cent, Apple will need to more than double its production capacity to 80–90 million in the next few years in India,” said Upasna Joshi, analyst at IDC. Joshi added, “A massive uptake in the growing power of India's electronic manufacturing, thus evolving as a star spot for an effectively price-competitive market landscape too.”
Tarun Pathak, research director at Counterpoint, confirmed the positive trend and said, "Apple’s manufacturing partners in India, including Foxconn and Tata, are steadily ramping up production. India has the potential to meet US demand; the real test will be how fast and efficiently it can scale."
However, persistent logistical issues threaten to derail progress. Equipment shipments critical for iPhone production continue to be delayed at Chinese ports. “The issue of shipments of specialised manufacturing equipment meant for India is repeatedly being held up in Chinese ports. The problem started in 2024, and since then, Chinese authorities have been stopping shipments or not giving approvals,” the report added quoting a source.
Meanwhile, trial production for the iPhone 17 series is underway in India, led by Foxconn and Tata Electronics, which is manufacturing components like casings. Past incidents, such as equipment being routed through Southeast Asia to bypass Chinese restrictions, underscore the challenges ahead.
“For raising production capacity within India, contract manufacturers will still heavily depend on the Chinese ecosystem for advanced parts and machinery. This mechanism should remain smooth for rapid expansion, and any delays on this will have a direct impact on the estimated numbers. Hence, these are achievable only with a smooth partnership between both sides,” Joshi noted.
Notably, Apple assembled $22 billion worth of iPhones in India during the 12 months ending March 2025, a nearly 60 per cent increase year-on-year, according to India’s IT Minister Ashwini Vaishnaw. Of this, $17.5 billion worth of devices were exported.
Tags
Who is online
62 visitors
Apple has been gradually moving iPhone production to India over the last few years. Trump's tariffs add urgency to the move. The Indian press has been covering Apple's shift to India for a while now. Here are some other sources:
These developments build upon news concerning high level trade negotiations that the US unbiased liberal press has chosen to downplay.
Trump's stupid, ignorant, cray tariffs must be working, after all. Who'd a thunk it?
This is similar to what they did with Mexico, when they sent parts there to be assembled & exported from Mexico.
Yes, indeed.