August 24, 2025 | 06:35 pm
TEMPO.CO, Jakarta - Apple is reportedly ramping up production of its upcoming iPhone 17 in India, a significant departure from its usual practice of manufacturing in China. According to a report by The Verge on August 20, the tech giant plans to assemble all four variants of the iPhone 17 in the South Asian country.
This move is part of Apple's broader strategy to diversify its supply chain and reduce its dependence on manufacturing in China. The successor to the iPhone 16E is also expected to be produced in India.
The shift is poised to provide several financial benefits for Apple. The company was expected to face import tariffs of up to US$1.1 billion this quarter. However, the exemption of tariffs for iPhones exported from India to the United States will help mitigate these costs.
Analyst Patrick Moorhead noted that while Apple can avoid various tariffs, he cautioned that most of the iPhone's sub-assemblies are still manufactured in China before being shipped to India for final assembly.
In early August 2025, Apple announced a US$500 billion commitment made earlier this year. U.S. President Donald Trump claimed that companies producing goods domestically would be exempt from future import tariffs on chips.
Meanwhile, U.S. Treasury Secretary Scott Bessent stated that the government plans to increase trade tariffs on India. He cited India's continued trade of Russian oil, despite sanctions imposed in response to the war in Ukraine, as the reason for this action.
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