Apple Shifts to Indian Firms for iPhone Assembly Machines Amid Ongoing China Import Delays

20 June 2025 – Apple Inc. is accelerating its efforts to localize the manufacturing of iPhone assembly machines in India as delays in Chinese imports threaten its production timelines. This strategic shift is seen as a critical move to reduce dependency on China due to geopolitical tensions, increasing tariffs and reinforce Apple’s long-term manufacturing plans in India. Apple aims to manufacture the majority of iPhones sold in the US at Indian factories by the end of 2026.

India May Play Bigger Role in Apple’s Global Supply Chain

A high-ranking official from the Ministry of Electronics and Information Technology (MeitY) said that Apple is in talks with Indian companies that can make the unique machinery needed to put together iPhones. This is part of Apple’s bigger plan to make its local supply chain stronger.

The change is happening because importing important machines from China is taking longer than expected, which could cause problems for the production of the next iPhones. Apple’s next-generation iPhone 17 series, which includes the Pro and Pro Max models, will be available worldwide in September or October 2025. These specialist machinery are necessary to put them together.

Foxconn and Tata Electronics Gearing Up for New Production Lines

The demand for such machines is expected to rise sharply, particularly with new production lines being set up by Foxconn and Tata Electronics. These companies are preparing to manufacture iPhones in India, a move that could significantly boost Apple’s local output capacity.

Historically, Apple’s assemblers such as Foxconn have procured machines through Apple-owned subsidiaries. For instance, in July 2024, Hon Hai’s Indian unit reportedly purchased $33 million worth of equipment from Apple Operations Ltd.

Local Firms Need Technical Support to Meet Apple Standards

While Indian firms are being considered for this critical role, the challenge lies in achieving the technical precision Apple demands. Experts believe Indian capital equipment manufacturers will require substantial guidance from Apple or its global suppliers to meet these stringent standards.

Potential Production Surge to $40 Billion

If Apple successfully localizes machinery manufacturing and scales up production for global markets — including the entire U.S. demand — India’s iPhone production value could jump from $22 billion in FY25 to $40 billion within the next one to two years. Even under conservative estimates, iPhone production in India is projected to reach $30–32 billion by FY27.

This move not only strengthens Apple’s position in India but also marks a major milestone in the country’s ambition to become a global electronics manufacturing hub.

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