Apple Doubles Down on India Production While U.S.--India Tensions Flare

This article first appeared on GuruFocus.

Aug 20 - Apple (NASDAQ:AAPL) is expanding iPhone 17 production in India as trade relations between Washington and New Delhi tighten over Russian oil imports. The company now manufactures all four iPhone 17 models across five factories in India, including two newly opened sites operated by Tata Group and Foxconn.

The move highlights Apple's strategy to reduce reliance on China and diversify its supply chain.

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Bloomberg reported that Apple also intends to launch a lower-cost iPhone 17e from India next year. The shift positions Apple to meet rising demand while mitigating risks tied to shifting global trade rules. According to Canalys, shipments of iPhones from India to the U.S. jumped 76% in May.

At the same time, political tension has escalated. U.S. Treasury chief Scott Bessent said the White House plans higher tariffs on India, accusing it of benefiting from discounted Russian oil. Earlier this month, President Donald Trump increased tariffs on Indian imports to 50% and signaled the potential for further hikes.

Apple is also increasing its U.S. manufacturing commitment, adding $100 billion to its American Manufacturing Program, which now totals $600 billion.

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