Given the current trade environment and tariff uncertainties between the United States and China, the commencement of the iPhone 17 series trial in India is not a big surprise. Apple is actively pursuing diversification outside of China, and India is a prime candidate due to its cost-effective labour, supportive government policies for manufacturing, and strategic sales location where India holds a lot of scope for future growth of iPhone business.
A large share of iPhones produced in India are shipped to the United States. According to S&P Global Market Intelligence, between December 2024 and February 2025, 82% of India-assembled iPhones were exported to the US. This figure spiked dramatically to 97.6% in March 2025, driven by a massive 219% surge in outbound shipments—likely an effort to get ahead of looming tariff hikes.
Despite this export push, Indian-made iPhones still represent just 8.5% of total iPhone sales in the US. market, where Chinese factories continue to dominate, supplying nearly 75% of the devices sold.
“The majority of iPhone 17 units manufactured in India are projected for export to the United States, with a portion allocated to fulfill domestic requirements. Shipments to other international markets outside US might be planned from China. Our forecast indicates that India will contribute approximately 26% to the global iPhone shipment volume by 2025,” Abhilash Kumar, Senior Industry Analyst at TechInsights.
One of the key obstacles to relocating iPhone production to India is the limited availability of essential parts. The country remains largely reliant on component imports from China to support its electronics assembly operations, including smartphones.
“This is an indication of Apple’s change in India priority. Earlier, we would desire that Apple makes latest generation iPhones in India. Now, its trialing an upcoming model which shows how seriously Apple is taking India and considering it as a primary market, something absolutely different that what it would think about India just 7-8 years back,” says Faisal Kawoosa, founder of Techarc.
Apple has been moving some of its iPhone production from China to India over time, even though there are still trade problems between the US. and China. The tech giant started making things in India in 2017, focussing on entry-level models at first. By 2022, it was also making premium Pro models through its contract partners. In the financial year 2025, Apple assembled iPhones worth $22 billion in India—a 60% year-over-year increase—indicating that one-fifth of all iPhones are now made in the country.
“Apple local manufacturing has been on a fast growth trajectory and if iPhone 17 is coming from Indian factory , its not a big surprise. Especially now with Make in India going more towards USA due to Tariffs the having latest version made in India makes a lot of sense,” Tarun Pathak, Research Director at Counterpoint Research noted.
The Indian iPhone manufacturing landscape is currently dominated by three key players: Foxconn, which accounts for 67% of output; Pegatron, contributing 17%; and Tata Electronics, which manages the rest. Despite this expansion, all three firms continue to rely on China for sourcing vital components.
