Apple is making a significant move in its global manufacturing strategy as it prepares to begin early production of the iPhone 17 in India. This decision marks the first time Apple will handle the early production stages of a base iPhone model outside of China. Sources close to the matter shared that Apple plans to use a facility in India for this phase, highlighting the company's efforts to diversify its production line amid a shifting global supply chain.
Apple's new direction with iPhone 17
For years, Apple's production has primarily relied on its Chinese suppliers. However, recent moves indicate a growing confidence in India as a key manufacturing partner. The early production phase is crucial, as it takes a prototype designed in the United States and transforms it into a product that can be manufactured on a large scale. Shifting this phase to India signals Apple's trust in the country's capabilities.
While the early manufacturing for the base iPhone 17 model will take place in India, the other models in the iPhone 17 series, such as the iPhone 17 Pro and the rumoured iPhone 17 Air, will reportedly remain in China for this stage. Apple's selective approach suggests a cautious but promising step in building India's role in its production network.
India's growing role in Apple's supply chain
India has made considerable strides in securing iPhone manufacturing contracts in recent years. Earlier in 2024, reports from Bloomberg noted that roughly one in seven iPhones was being assembled in India. This development represents a steady increase in production volumes in India, a trend Apple appears committed to expanding.
Despite facing initial challenges when setting up iPhone production in India, Apple's partners have worked through many obstacles, allowing for smoother operations. For example, some iPhone 16 Pro models are now being assembled in India for the first time. This success has likely encouraged Apple to take a further step, entrusting India with the early manufacturing for the upcoming iPhone 17 base model.
A step towards reducing reliance on China
Apple's gradual shift to production in India aligns with its strategy to reduce its dependence on China for manufacturing. If the early production of the iPhone 17 in India goes well, Apple could move more of its operations outside China, creating a more diversified and resilient supply chain. The tech giant's approach mirrors a broader trend among major companies as they look to hedge against potential risks associated with relying heavily on one region.
Apple's decision to expand iPhone production in India reflects the country's rising position as a global manufacturing hub. This latest move in Apple's production strategy could lead to new opportunities for India's technology and manufacturing sectors, ultimately bolstering the country's presence in the global supply chain. As Apple tests India's capabilities with the iPhone 17, the success of this venture could pave the way for a more substantial role in the production of future Apple products.
