Apple has shifted a significant portion of iPhone production outside China over the past year, even while incurring higher costs. The company now reaches the halfway mark toward its goal of evenly dividing iPhone assembly between China and India.
Progress Toward 50/50 Production Balance
China remains the primary hub for iPhone assembly, but Apple accelerates efforts to expand manufacturing in other regions. India emerges as the key secondary site, with plans to handle 50% of global iPhone production within the next year.
A major achievement includes simultaneous rollout of the iPhone 17 series production in both countries. Earlier models launched exclusively in China, followed by delayed production in India.
Navigating Higher Costs in India
Assembly in India commands a premium compared to China. Apple offsets these expenses through negotiations for tax incentives. One key win involves exempting production equipment supplied to local partners from taxes.
