On July 12, according to a report by India's Economic Times citing Indian customs data, Foxconn has begun importing components from China to India for the assembly of Apple's upcoming iPhone 17. Given that the number of imported components is currently only a small fraction of those for the previous model, it may be used for trial production.
Indian customs data shows that various components and sub-assemblies, such as display modules, glass covers, mechanical housings, and integrated rear camera modules, have started arriving in India. In fact, components for the iPhone 17 account for about 10% of the total components imported by Foxconn from China to India in June. Most of the components imported by the company that month were for the iPhone 16 and iPhone 14 models, as Foxconn plans to increase sales of these models during the Indian holiday season.
The Economic Times reported that the iPhone 17 will start trial production this month, with mass production expected to begin in August and an official launch scheduled for September. This tech giant based in Cupertino, California, plans to produce the iPhone 17 simultaneously in India and China from day one, as India has become its strategic export hub, especially for models destined for the U.S. market.
Notably, due to high tariffs imposed by the Donald Trump administration, Apple is increasing its iPhone production in India and plans to shift all iPhone procurement for the U.S. market to India by 2026, despite the U.S. government's increased pressure on producing these phones in India.
The Economic Times cited data from S&P Global Market Intelligence, which showed that iPhone exports from India to the U.S. rose by 219% year-on-year in March.
It was reported that Apple is gradually narrowing the gap between iPhone production in China and India. The assembly of the iPhone 14 in India started six weeks later than in China, but the assembly of the iPhone 15 almost began simultaneously in both countries. India participated in the new product introduction (NPI) process for Apple's 2024 iPhone 16 series. The report pointed out that Apple plans to continue this model in the upcoming iPhone 17 series.
According to Bloomberg, a U.S. media outlet, on July 2, Apple's largest assembly partner, Foxconn, had asked over 300 mainland Chinese employees at its iPhone factory in India to return home.
On July 14, according to The Times of India, the Indian government responded to the departure of Chinese engineers from Foxconn's largest iPhone supplier factory in India.
A government source said in a statement to PTI: "The government is closely monitoring the situation. Apple has other options, and they should be able to find a solution. The main issue lies between Apple and Foxconn. A large portion of mobile phone manufacturing equipment is imported from China, and Chinese professionals possess the expertise to operate these machines."
The report cited sources who said that the engineers who returned to China were responsible for the assembly lines, factory design, and worker training for iPhone production. A source who did not want to be named said that the Indian government is closely monitoring Foxconn's production goals. Foxconn is also one of the key selected companies under India's Production Linked Incentive (PLI) program.
The departure of Chinese employees is expected to impact Apple's manufacturing expansion plans in South Asia. Foreign media cited sources saying that the departure of Chinese employees will delay the training of local Indian employees and the transfer of Chinese manufacturing technology, potentially leading to increased production costs. Additionally, while this will not affect the quality of production in the Indian factory, it might reduce the efficiency of the assembly lines.
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