Date: August 22, 2025
Author: Newsneck
In a landmark decision that marks a significant shift in global manufacturing, Apple Inc. has begun producing all four models of its upcoming iPhone 17 Air and other variants in India for the first time ever. This strategic move represents Apple’s most substantial effort to reduce its longstanding dependency on Chinese manufacturing amid growing geopolitical tensions and tariff concerns.
Watershed Moment in Global Manufacturing
According to a Bloomberg report, Apple is currently manufacturing all four iPhone 17 Air and other series models in India ahead of their scheduled debut next month. This includes the standard iPhone 17, the premium iPhone 17 Air, and both Pro models, with devices expected to ship to the U.S. market from day one of release.
This manufacturing shift represents what industry analysts are calling a “watershed moment” in global smartphone production. Sanyam Chaurasia, principal analyst at Omdia tech, noted, “China will remain central for Apple’s flagship innovation and base models. However, the trend is clear: The center of gravity in iPhone production is tilting toward a multi-country model”.
The Drive Behind Apple’s Strategic Pivot
Apple’s move to diversify its production capabilities comes after years of planning. As recently as 2021, a staggering 99% of all global iPhones were assembled in China. By last year, that figure had dropped to 81%, and expectations suggest it will reach 50% by approximately 2027.
The relocation of iPhone 17 Air production has been accelerated by several key factors:
- Geopolitical Pressures and Tariffs: Former President Donald Trump’s administration had threatened blistering 50% tariffs on imports from China, creating significant financial incentives for Apple to shift production elsewhere. Although Apple eventually secured exemptions through commitments to U.S. manufacturing, the tariff threats highlighted the risks of concentrated production in one country.
- Supply Chain Resilience: Apple CEO Tim Cook previously emphasized that the company learned “having everything in one location had too much risk.” The COVID-19 pandemic and subsequent trade tensions exposed vulnerabilities in concentrated supply chains, prompting Apple to seek more diversified manufacturing bases.
- India’s Manufacturing Growth: India has emerged as Apple’s most viable alternative to China, with iPhone production there jumping 63% (to $7.5 billion in exports) in the second quarter of 2025 alone. The country has become the number one maker of smartphones shipped to the U.S., with a 27% increase in U.S.-bound iPhones made in India from the first half of 2024 to the first half of 2025.
Manufacturing Infrastructure and Partnerships
Apple’s expanded Indian production is facilitated through five manufacturing plants, including new facilities operated by Tata Group in Tamil Nadu and Foxconn near Bangalore airport. This infrastructure allows Apple to maintain its ambitious release schedule for the iPhone 17 Air and other models while diversifying its production base.
The technological capabilities of Indian manufacturing have advanced significantly. Apple asserts that it is “virtually impossible to tell an iPhone made in China from one made in India or Vietnam,” though replicating this quality for new and intricate designs like the iPhone 17 Air remains challenging.
The American Manufacturing Connection
Concurrent with its Indian expansion, Apple has dramatically increased its U.S. manufacturing commitments, announcing an additional $100 billion investment through its new American Manufacturing Program (AMP). This brings Apple’s total U.S. investment commitment to $600 billion over four years.
The AMP program focuses on developing domestic production capabilities for critical components, including partnerships with Corning for iPhone glass in Kentucky, Coherent for Face ID lasers in Texas, and MP Materials for rare earth magnets. These components will eventually be shipped to assembly locations worldwide, including India.
Apple COO Sabih Khan explained, “We’re committed to supporting U.S. suppliers involved in every key stage of the chip-making process—from the earliest stages of research and development to final fabrication and packaging.”
The iPhone 17 Air: A Testament to Globalized Production
The iPhone 17 Air itself represents one of Apple’s most significant design innovations in years. Rumored to be Apple’s thinnest iPhone ever at approximately 5.5-6.25mm thick, the device features a 6.6-inch display and represents a new category in Apple’s lineup, effectively replacing the Plus model.
Production of the sophisticated iPhone 17 Air in India demonstrates the remarkable progress of Apple’s manufacturing partners there. The device is expected to feature a single 48MP rear camera, a centered camera bump, and potentially an Apple-designed 5G modem.
Looking Ahead: A Multi-country Manufacturing Future
While Apple’s pivot to India represents a significant reduction in Chinese manufacturing, company executives emphasize that “Apple isn’t abandoning China, but it is de-risking by building parallel supply chains.” China will continue to be the origin country for most Apple products sold outside the U.S.
The successful production of the iPhone 17 Air and other models in India marks a new chapter in global technology manufacturing—one defined by diversification, resilience, and adapted strategies in response to an evolving geopolitical landscape. As consumers await the official unveiling of the iPhone 17 Air in September, they’re witnessing not just the launch of a new device but the emergence of a new global manufacturing paradigm.
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