Apple’s push to diversify its iPhone production beyond China and expand manufacturing in India has indeed encountered multiple hurdles.
Chinese authorities reportedly blocked the export of key equipment to India earlier this year, delaying the trial production of the iPhone 17.
This disruption, detailed by The Information, comes as Apple sought to shift more iPhone production to India.
To bypass these restrictions, the supplier allegedly used a third-party entity in Southeast Asia to acquire and transfer equipment to Foxconn’s factory in India.
According to the International Data Corporation, the U.S. accounted for about 28% of Apple’s 232.1 million global iPhone shipments in 2024.
To meet this demand, Apple would need to produce over 60 million iPhones annually in India.
Chinese authorities have extended approval times for exporting iPhone-making equipment to India from two weeks to four months, pushing Apple to adopt complex workarounds, such as using “front companies” in Southeast Asia to acquire the required machinery.
“In many cases, Chinese authorities are delaying or blocking shipments of iPhone equipment to India without explanation,” The Information noted, adding that approval times for exporting iPhone-making equipment from China to India have increased from two weeks to as long as four months.
Currently, Apple assembles around 20% of its iPhones in India, but The Information reports that the company aims to move about half of its iPhone production out of China in the long term.
This shift marks a dramatic reversal for Apple, which spent nearly two decades building its manufacturing base in China, a key factor in its rise to becoming a trillion-dollar company.
Apple is yet to comment on these developments.
