India's Tata Facility Starts Producing iPhones

A second Foxconn facility in Bengaluru is preparing to begin shipments as early as next month, while Apple has begun production at a brand-new Tata Electronics plant in Tamil Nadu.

Given the growing trade tensions between Washington and Beijing, these events represent a significant step in Apple's strategy to diversify its supply chain and lessen its dependency on China.

Apple is acting quickly to protect itself from the threat of new US tariffs on Chinese imports, some of which are reportedly above 100%.

 Although the US administration has indicated that this could change in the upcoming weeks, the corporation has so far been exempt from the worst of the trade war tariffs on electronics. India is now a vital component of Apple's worldwide jigsaw because of this uncertainty.

iPhone’s Production in India is Scaling Up

Older iPhone models are now being produced on a single line at the new Tata plant in Hosur, southern India.

According to media reports, Foxconn's impending $2.6 billion factory in the capital of Karnataka is anticipated to begin trial production of the iPhone 16 series soon. When fully operational by the end of 2027, the plant is expected to create about 50,000 jobs and be able to produce between 300 and 500 iPhones per hour at full capacity.

Apple Moving Away from China

There is more to Apple's intention to increase its manufacturing presence in India than merely reacting to trade constraints. It's a calculated restart. India now produces around 18% of the world's iPhones, compared to China's more than three-quarters, according to Counterpoint Research. And Apple wants a big increase in that share.

By the end of 2026, the tech giant plans to move the majority of iPhones headed for the US to Indian factories. That urgency is supported by the numbers. Apple delivered a record 600 tonnes of iPhones to the US from India in March alone, totalling an incredible $2 billion. More than half of that volume came from Foxconn.

Despite being a relatively new supplier to Apple, Tata has become a significant player. With these additional facilities, Apple now has five significant plants in India that are jointly operated by Tata and Foxconn.

A media report claims that the factory where the iPhone 16 and 16e models will be constructed can generate between 300 and 500 iPhones per hour.

China has lost around $150 billion in electronics exports to the US, giving nations like Mexico, Vietnam, and India the chance to profit from the redirected investment and production.

Another benefit for Apple is that the minimum wage in China is significantly lower than that in the US, at about $2.10 per hour. However, as businesses look for alternatives to China, India is becoming more and more appealing due to its even lower labour costs.