Apple's India Manufacturing Push Faces Challenges from China

Apple has a bold plan to shake things up by building more iPhones in India and trying to rely less on China. But it’s hitting some big bumps, mostly because of China-related headaches and local growing pains.

Apple’s been working with partners like Foxconn, Pegatron, and Tata’s Wistron to get iPhone production rolling in India. With some nice incentives from India’s government, like the Production-Linked Incentive program, India’s gone from barely making iPhones to handling about 14% of Apple’s global supply. Last year, they made 7 billion USD worth of iPhones. Apple’s even planning to start building the iPhone 17 base model there by late 2025, showing they’re serious about making newer models outside China, where 80% of iPhones are currently assembled.

But it’s not all smooth. Some iPhones made in India, like the iPhone 15, had quality issues, with tons of returns. That forced Apple to send some production back to China for now. India’s factories also struggle with shaky infrastructure and slower shipping, which slows things down. Plus, there’s bad blood between India and China over border disputes, so India’s put tough rules on Chinese companies. That makes it hard for Apple’s Chinese suppliers to set up in India.

The U.S.-China trade war and tariffs are also pushing Apple to spread out its manufacturing, and India’s a top pick. Last year, Apple exported 12.8 billion USD in iPhones from India, up 42% from the year before. But China still has a big hold on the supply chain, since a lot of iPhone parts come from there.

Apple’s not backing down. They’re planning four new stores in India and want to make 32% of their iPhones there by 2027. But to pull this off, they’ll need to navigate these political messes and help India’s factories get up to speed.