Apple Inc.’s efforts to reduce its manufacturing dependence on China have encountered significant challenges, despite the company’s aggressive push to diversify its global supply chain. According to a recent report by The Information, Apple aims to move up to 50% of its iPhone production out of China, a strategic pivot driven by escalating geopolitical tensions and mounting U.S. trade restrictions.
The urgency for diversification intensified following the United States’ imposition of a 125% tariff on Chinese-manufactured goods. While trading partners were granted a temporary 90-day waiver, China remained excluded, placing additional pressure on U.S. tech companies reliant on Chinese manufacturing.
India has emerged as a prime candidate for Apple’s supply chain diversification strategy. Backed by supportive government policies and expanding local partnerships—most notably with the Tata Group—India offers a promising alternative for large-scale production. The country’s proactive stance and infrastructure development have already attracted significant investment from Apple and its suppliers.
However, Apple’s transition has not been without friction. The report reveals that Chinese authorities recently blocked an Apple equipment supplier from exporting key machinery required for trial production of the upcoming iPhone 17 to India. In a workaround, the supplier was compelled to establish a shell company in Southeast Asia to reroute the equipment to Foxconn’s Indian facility—highlighting the complex geopolitical and operational challenges Apple faces in executing its strategy.
Despite these obstacles, Apple remains committed to India as a strategic hub for both manufacturing and market expansion. Currently, China still accounts for nearly 80% of iPhone production, but India’s share is expected to rise steadily as Apple navigates political sensitivities and logistical constraints.
Apple has not issued an official statement regarding the reported developments.
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