Apple is continuing its effort to reduce dependence on China for iPhone manufacturing, and the company is reportedly willing to accept higher production costs to make that happen. According to recent reports, Apple has now reached an important milestone in its long-term plan to shift a significant portion of its iPhone production outside China, with India emerging as the main alternative manufacturing hub.
For years, China has been the center of Apple’s supply chain, with the majority of iPhones assembled there through partners such as Foxconn and other large manufacturers. The country offers a highly developed production ecosystem, efficient logistics, and a massive network of suppliers that has been built over decades. Because of that infrastructure, manufacturing in China is typically cheaper and more streamlined compared to newer locations.
However, Apple has been gradually expanding production in India over the past several years. The goal is to create a more balanced manufacturing setup that reduces the company’s reliance on a single country. According to the latest reports, Apple has now reached roughly the halfway point toward its long-term target of splitting iPhone production more evenly between China and India.
The transition isn’t coming cheap. Apple is reportedly paying a premium to manufacture iPhones outside China, at least for now. Setting up new manufacturing lines, training workers, and building supply chain connections all add to the cost. India’s manufacturing ecosystem is still developing compared to China’s, which means certain efficiencies simply aren’t there yet.
Despite the higher costs, Apple appears committed to the strategy. Diversifying its production base has become increasingly important as global supply chains face disruptions, geopolitical tensions, and changing trade policies. By expanding manufacturing in multiple regions, Apple can reduce the risk of large-scale production slowdowns if problems arise in one location.
To help offset some of these additional costs, Apple has also been working with local governments to secure incentives and reduce financial burdens tied to manufacturing expansion. In some cases, the company has successfully avoided certain tax implications related to the equipment supplied to its manufacturing partners, which can make large production investments more manageable.
India is currently the biggest beneficiary of this shift. Apple has been working with partners such as Foxconn and Tata to expand assembly operations there, and the country is quickly becoming the company’s second major production center for iPhones. While China still handles the majority of manufacturing today, the gap is gradually narrowing as Apple continues to increase output in India.
For Apple, the move is less about replacing China and more about building a supply chain that is spread across multiple regions. Even if it means paying more in the short term, the company appears willing to invest heavily to make its global production network more flexible and resilient in the long run.
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