Key Points
- Apple has reportedly boosted iPhone production in India
- Production increased at five factories ahead of the iPhone 17 launch
- Move comes as India faces U.S. pressure over continued Russian oil purchases
- White House reportedly considering higher tariffs on India
- Treasury Secretary Scott Bessent accused India of “profiteering” from the war
- Geopolitical tensions may be influencing Apple’s global supply chain strategy
Apple Boosts iPhone Production in India Amid U.S. Pressure Over Russian Oil Trade
Apple has reportedly ramped up iPhone production in India as the country comes under increasing pressure from the White House for its continued purchases of Russian oil.
“We have planned to increase tariffs on India,” Treasury Secretary Scott Bessent said during an appearance on CNBC’s Squawk Box on Tuesday. “These are secondary tariffs for buying the sanctioned Russian oil.”
Bessent went further, accusing India of “profiteering” by purchasing discounted Russian oil and reselling it during the ongoing war in Ukraine—calling the practice “unacceptable.”
Earlier this month, President Donald Trump raised tariffs on Indian imports to 50%. In July, he warned that unless a peace deal is reached in Ukraine by September, the U.S. would impose additional secondary tariffs—“at about 100%”—on Russia’s trading partners.
Amid these escalating geopolitical tensions, Apple has reportedly increased production at five of its factories in India in preparation for the launch of its upcoming iPhone 17 lineup, according to a Bloomberg report citing sources familiar with the matter. The expansion involves new facilities operated by Tata Group and Foxconn Technology. Apple is also planning to manufacture a new iPhone 17e model in India starting next year.
The move is part of Apple’s broader strategy to diversify its supply chain away from China, especially as U.S.-China trade tensions continue. In recent years, Apple has significantly expanded its footprint in India to mitigate global supply chain risks.
Data from research firm Canalys showed that iPhone shipments from India to the U.S. surged by 76% in May, amid rising concerns about potential trade restrictions.
Meanwhile, Apple is maintaining a strong commitment to U.S.-based manufacturing. The company has pledged to invest more than $600 billion in the U.S. over the next four years. That includes a $100 billion spending push this month, featuring a $2.5 billion investment in Corning, the company that produces iPhone glass.
This substantial domestic investment may help Apple avoid punitive tariffs linked to its operations in India.
