Apple is significantly ramping up production of Pro models of its upcoming iPhone 17 series in India this year to meet U.S. demand. The move highlights the country’s growing role in the tech giant’s global supply chain strategy and signals that the company’s expansion plans remain unchanged, despite U.S. President Donald Trump's concerns about Apple’s expanding manufacturing presence in India, sources familiar with the matter said.
“The scale-up of Pro models of the upcoming iPhone 17 series will happen this year as Apple plans to source most of the US iPhone demand from India, and the demand for iPhone Pro models is one of the highest in the US. Additionally, the demand for Pro models is increasing in India, hence the scale up,” a source familiar with the matter told Moneycontrol.
The person added that Foxconn, Apple's largest contract manufacturing partner in India, will scale up production of the iPhone 17 Pro model. Foxconn has kicked off trial production of the iPhone 17 series in India, while Tata Electronics is also involved in the trial production of components such as casings for the new lineup.
Apple began making top-of-the-line iPhone Pro models last year at its Sriperumbudur facility through Foxconn.
Another person said that 50–60% of the total iPhone demand in the U.S. is for Pro models, compared to the mid-twenties in India—a figure that is also expected to grow in 2025.
People familiar with Apple’s India expansion plans said that despite U.S. President Donald Trump’s remarks criticizing the company’s India strategy, the company’s approach remains unchanged.
The company is also in regular contact with the Indian government and has assured it of its continued commitment to using India as a major manufacturing base.
“The expansion will continue this year. There is no change in Apple’s investment plans in India as it is one of the important markets,” the first person said.
U.S. President Donald Trump said on May 15 in Doha, Qatar, that he spoke to Apple Inc. CEO Tim Cook and told him there’s no need to build factories in India unless it’s to serve that market specifically.
“Trump in Doha, after his conversation with Apple CEO Tim Cook,” told him, "We're not interested in you building in India; they can take care of themselves."
“I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with $500 billion but now I hear you are building all over India. I don’t want you building in India. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India. They (India) have offered us a deal where basically they have agreed to charge us literally no tariffs. I said Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves," Trump said.
Analysts noted that manufacturing in the U.S. would be considerably more expensive than assembling iPhones in India, and establishing a supply chain is a complex process that can't be accomplished overnight..
“Apple has been ramping up its supply chain outside of China over the years, and so have other players. I don't think this [Trump’s comment] will have an immediate or significant impact on Apple’s India plans. India brings in a very different expertise from a pure economics point of view,” Tarun Pathak, research director at Counterpoint Research, told Moneycontrol.
"This is a familiar tactic from Trump as he tries to pressure Apple to localise more and build out a supply chain in the U.S., but that’s not something that can happen overnight," Pathak added.
Apple aims to manufacture most of the iPhones it sells in the United States at factories in India by the end of 2026. It is accelerating these plans to navigate potentially higher tariffs in China, its primary manufacturing hub.
A query sent to Apple didn't elicit any response.
Moneycontrol reported on May 5 that iPhone production in India could reach nearly $40 billion by value in FY26, with approximately 80% of that output likely destined for the U.S. market.
With $40 billion worth of production, Apple would be able to meet 80% of U.S. demand and 100% of local demand, which continues to grow each quarter. “The April–June quarter is also on track to be a bumper quarter for Apple in India,” another analyst said on condition of anonymity.
According to estimates by analysts and industry experts, Apple will need to increase its total iPhone production value in India from the current $22 billion to meet its goals. This involves nearly doubling exports from $17.5 billion to between $32 billion and $35 billion, while the domestic market is projected to account for approximately $5 billion to $8 billion.
Apple plans to reroute a significant portion of India-made iPhones—previously bound for European countries, the UK, Turkey, and Japan—to the U.S. in the June quarter. According to industry officials and analysts, Apple is accelerating local manufacturing to cushion the impact of rising U.S. tariffs.
Apple has been shipping India-made iPhones to countries like the Netherlands, Italy, the Czech Republic, Japan, Turkey, the UK, and the UAE. By tweaking the models, it will reroute India-made iPhones meant for these markets to the U.S. for the June quarter.
Apple’s partners are already expanding the capacities of their Indian factories and setting up new units. Taiwanese contract manufacturer Foxconn has commenced production of Apple AirPods at its Hyderabad facility for export, while its new, larger plant in Bengaluru is set to begin operations soon to ramp up iPhone production in India. It is expected to play a key role in ramping up exports from India.
Tata Electronics’ new iPhone factory in Hosur has also begun operations and is assembling older-generation iPhones. It is also significantly ramping up to double the production of enclosures for Apple's iPhones at its Hosur unit.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
