A new manufacturing facility for iPhones has commenced operations in southern India, with plans for another to start shipping products in May. This move is part of Apple's strategy to enhance its production capabilities beyond its primary manufacturing location in China, which is facing challenges due to tariffs. As tensions escalate in the trade dispute between the United States and China, with President Donald Trump imposing tariffs exceeding 100 percent on Chinese goods, Apple is looking to establish India as a viable manufacturing alternative. The imposition of these tariffs poses risks for supply chain stability and raises concerns about potential increases in iPhone prices. Although the Trump administration has yet to apply tariffs on electronics imported from China, indications suggest that further tariffs may be implemented soon.

A Tata Electronics facility located in Hosur, in Tamil Nadu, India, recently began making older iPhone models on an assembly line. Additionally, a $2.6 billion factory being built by Taiwan's Foxconn in Bengaluru, Karnataka, is set to initiate its operations with one assembly line shortly, as reported by multiple sources, including a government representative. One insider noted that the factory has the capacity to produce approximately 300 to 500 iPhones per hour, with plans to manufacture the iPhone 16 and 16e models. Upon reaching full production capacity, which is anticipated by December 2027, the facility is expected to generate around 50,000 jobs.

Tata declined to provide comments, while Apple and Foxconn did not respond promptly to inquiries. Currently, over 75 percent of worldwide iPhone production occurs in China, whereas India accounts for an estimated 18 percent, according to research firm Counterpoint. Reports from Reuters indicate that Apple is making significant efforts to transfer production of most iPhones sold in the US to Indian factories by the end of 2026. Recently, Apple has increased its production in India to mitigate the impact of US tariffs, shipping around 600 tons of iPhones valued at approximately $2 billion to the US in March—setting a monthly record for both Tata and Foxconn, with Foxconn contributing $1.3 billion in smartphone shipments. Tata, which has recently become a supplier for Apple, is rapidly establishing itself as a prominent contractor in India. With these new plants, Foxconn and Tata will collectively manage five iPhone manufacturing sites in the country.