A new iPhone factory in southern India has begun production, with another set to start shipments in May, as Apple ramps up manufacturing outside its tariff-battered primary hub in China, sources confirm. Apple is strategically pivoting to India as a robust alternative to China amid escalating trade tensions, with President Trump’s 100%+ tariffs on China seeking to protect American interests while potentially disrupting supply chains and raising iPhone costs or lowering Apple’s iPhone margins.
Reuters:
The Trump administration has so far spared China-made electronics from tariffs, but Washington has signaled that some levies could come in the coming weeks.
A new Tata Electronics plant in Hosur in south India’s Tamil Nadu state started operations in recent days to make older iPhone models on one assembly line, one source said.
Another $2.6 billion plant run by Taiwan’s Foxconn that is under construction in Bengaluru, Karnataka state, will also start initial operations with one assembly line within days, according to four sources, including one government official.
One source said around 300-500 iPhone units per hour can be made at the factory where, according to another, iPhone 16 and 16e models will be produced. The plant is expected to create 50,000 jobs at full capacity when construction is fully completed, which is expected by December 2027.
MacDailyNews Take: The more that can be produced outside of China, and the quicker they can ramp up, the better.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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