Apple Increases iPhone Production in India Amid U.S. Concerns Over India-Russia Relations

Apple has significantly increased its iPhone production in India amid growing U.S. pressure over India’s continued purchase of Russian crude oil. The White House, under President Donald Trump, has expressed strong concerns about India’s engagement with sanctioned Russian oil, citing it as “profiteering” amid the Ukraine war. Treasury Secretary Scott Bessent stated that the U.S. planned to impose additional tariffs on India, calling them “secondary tariffs” for buying sanctioned Russian oil. Earlier in the month, President Trump raised tariffs on Indian imports to 50% and warned of imposing secondary tariffs up to 100% on Russia’s trading partners if a peace agreement with Ukraine was not reached by September.

Against this geopolitical backdrop, Apple has expanded its production capacity across five factories in India to prepare for the launch of its upcoming iPhone 17 models. The expansion involves new plants and additional production lines in facilities operated by Tata Group and contract manufacturer Foxconn Technology. Reports indicate that Apple is also considering the development of a new variant, the iPhone 17e, to be manufactured in India in the coming year. This move aligns with Apple’s broader strategy to reduce its manufacturing reliance on China, especially in light of recent trade tensions between the U.S. and China. By increasing production in India, Apple seeks to diversify its supply chain and ensure a steady flow of iPhones to global markets.

Data from Canalys indicates that iPhone shipments from India to the United States surged by 76% in May, reflecting the success of Apple’s expansion and the increasing role of India as a major production hub. By shifting more production to India, Apple mitigates risks associated with geopolitical tensions and trade restrictions affecting its global supply chain.

In parallel with expanding Indian production, Apple has committed to investing over $600 billion in the United States over the next four years to enhance domestic manufacturing. This investment includes a $100 billion spending increase this month alone, with $2.5 billion specifically allocated to expand the production capacity of iPhone glass manufacturer Corning. These U.S.-based investments help Apple demonstrate its commitment to domestic manufacturing and may mitigate the impact of India-related tariffs.

Apple’s dual strategy of boosting Indian production while increasing investment in U.S. manufacturing addresses both supply chain diversification and regulatory concerns. By manufacturing more in India, Apple can continue meeting global demand for its devices, including the new iPhone 17 series, while remaining less dependent on China. At the same time, its U.S. investments support domestic production, create jobs, and align with U.S. government priorities, helping to alleviate political pressure over India-related trade issues.

Overall, Apple’s production expansion in India and massive investment in the U.S. underscore the company’s proactive approach to navigating complex international trade dynamics. The strategy ensures continuity of supply, supports global product launches, and balances geopolitical risks while reinforcing Apple’s presence in two critical markets: India and the United States. By leveraging India as a growing manufacturing hub and committing significant resources domestically, Apple positions itself to meet rising demand, optimize its supply chain, and maintain compliance with evolving international trade and tariff regulations.