Apple $AAPL is intensifying its global manufacturing strategy with a decisive focus on iPhone 17 production in India and China. According to a recent Wedbush research note led by analyst Dan Ives, the tech giant is aligning its supply chain to reinforce Apple’s manufacturing presence in Asia, distancing itself from costly domestic production in the U.S.
Recent supply chain assessments reveal that India could assemble up to 65% of iPhone 17 units by the end of this year — a sharp rise reflecting Apple's accelerated production shift from China and growing confidence in India’s capabilities.
Lower labor and operational costs in India
Supportive tax incentives and government initiatives
Strategic diversification amid geopolitical tensions
Streamlined global supply chain optimization
India now plays a vital role in Apple's production ecosystem, offering a flexible, scalable alternative without disrupting quality or efficiency.
While Apple reduces its overreliance on Chinese factories, China still retains a key position in the company’s diversified manufacturing strategy. Apple’s approach balances resilience with continuity, allowing flexibility in response to shifting tariff policies and global political developments.
Despite injecting over $500 billion into the U.S. economy, Apple has no intention of shifting iPhone production to the U.S. Analysts from Wedbush cite significant barriers:
U.S.-based assembly would raise iPhone prices to approximately $3,500
Lack of infrastructure to support high-volume manufacturing
Years-long delays in establishing a comparable supply chain
Disruption of Apple’s pricing model and profit margins
Even with potential pressure from a future Trump administration, Apple’s cost analysis clearly favors Asia for production.
Apple’s strategy reflects calculated foresight. With a temporary easing of U.S.–China trade tensions, the company can strategically allocate production between India and China. Meanwhile, Apple prepares for future growth, leveraging its Asian manufacturing base.
Anticipated AI announcements at WWDC
Focus on resilient global operations
Long-term planning amid market uncertainty
Continued efforts to diversify production beyond China
Apple’s refined iPhone production strategy in Asia represents a balanced, cost-effective, and geopolitically aware response to global market pressures. By focusing on India and maintaining strong ties with China, Apple not only reduces risk but also secures its long-term growth trajectory in a rapidly changing world.
The shift away from U.S. production isn’t just economical — it’s essential for preserving Apple’s competitive edge and maintaining affordability for consumers worldwide.
It's fascinating to see Apple adapting its strategy to balance efficiency with global supply chain challenges!
Exciting to see Apple ramping up production in Asia; it's a smart move for efficiency!