Apple's iPhone move to India may face Chinese hurdles as iPhone 17 trials begin

Already in India, Apple's contract manufacturers are ramping up existing capacity, with Foxconn's Bengaluru plant likely to be operational within this month

Apple plans to shift the manufacturing of all iPhones intended for sale in the US to India by the end of 2026, from China, fast-tracking its supply chain diversification amid intensifying US-China trade tensions, having started a trial production run for the iPhone 17 series in India.

But Beijing may stand in the way. Chinese authorities are once again delaying or blocking the export of key manufacturing equipment crucial to scaling up iPhone production in India, according to industry executives and analysts.

Under the ambitious plan, Apple aims to shift production of over 60 million iPhones annually—covering all US demand—to Indian factories by the end of 2026, people familiar with the matter told Moneycontrol.

The Financial Times first reported that Apple plans to shift the assembly of iPhones sold in the US to India by next year.

"Apple recently sent 1.5 million iPhones from India to the U.S. 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 U.S. iPhone demand from its Indian facilities," a source with knowledge of the situation said.

Apple is also in constant contact with Indian authorities, discussing its plans to manufacture in India for the United States. However, the final decision to completely shift US-bound iPhone assembly to India will also depend on trade talks with China and the US, the person added.

US President Trump has been pushing Apple to pivot away from China as trade tensions linger between the two nations, and Trump confirmed that China is in talks with the U.S. over the tariffs.

Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, separately told Moneycontrol that a robust bilateral trade deal with the US is critical. The global scenario, particularly in terms of benchmarking with China and Vietnam on competitiveness, will also be critical.

“We are cautiously optimistic about GVC’s moving to India with all the strenuous efforts being made,” he said on Apple’s scale-up plans for India.

Already in India, Apple's contract manufacturers are ramping up existing capacity, with Foxconn's Bengaluru plant likely to be operational within this month, with a peak capacity to make 20 million units.

In 2024, India accounted for 18–20% of global iPhone production, with analysts suggesting that this figure could reach 25–30% as early as 2025.

Apple currently produces around 40–45 million iPhones annually in India, primarily for both domestic use and export. India accounted for 18–20% of global iPhone production in 2024, according to IDC.

“To raise the share of global production to say 40% by next year from the current 17–18%, 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.

“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,” Joshi added.

Tarun Pathak, research director at Counterpoint, said made-in-India iPhones accounted for 18% of global shipments in 2024 and could reach 25-30% this year.

"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," Pathak added.

However, the road ahead may not be smooth. Government officials and analysts say Apple’s expansion in India is being hampered by increasing delays at Chinese ports, where shipments of specialised equipment are being held up.

“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,” said a person aware of the matter.

Apple suppliers are currently coordinating with the Ministry of Electronics and Information Technology (Meity), which is in talks with India’s external affairs ministry to raise the matter with Chinese officials. They, however, haven’t raised any new complaints with the ministry.

In the meantime, Apple, through its partner Foxconn, has kicked off trial production of the iPhone 17 series in India. Tata Electronics is also involved in the trial production of components, such as casings, for the new lineup, according to sources who spoke with Moneycontrol.

Earlier this year, Foxconn reportedly faced issues importing essential equipment from China. According to The Information, one Chinese supplier had to route machinery through a Southeast Asian front company before it could reach Foxconn’s Indian facility.

“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,” said IDC’s Joshi.

Queries sent to Apple didn't elicit any response at the time of publication.

Apple assembled $22 billion worth of iPhones in India during the 12 months ending March 2025—a nearly 60% increase year-on-year. Of that, $17.5 billion worth of iPhones were exported, India’s IT Minister Ashwini Vaishnaw said on April 8.