Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the iPhone 16e model newly launched by Apple will be produced in India. This means that all five models of the iPhone 16 series will be produced in India.
Nearly all of Apple’s mobile phones currently sold in the United States are made in China, but supply chain disruptions concerns have prompted Apple to seek diversification of production. Apple’s largest OEM, Foxconn, has established assembly factories in India. It is expected that, by 2027, the proportion of iPhones made in India will rise from 15 percent now to 25 percent.
In tapping India, Apple will need to face challenges in the form of power shortages, lower manufacturing capacity (as compared with China), as well as tariff policy risk. If President Trump imposes Tariffs on India then iPhones exported from India to the United States would likely be subject to those tariffs. According to internal Apple sources, however, Apple believes that India is likely in a better position to negotiate with the United States as compared to China.
Source: Lianhe Zaobao, February 22, 2025
https://www.zaobao.com.sg/news/world/story20250222-5916146