Despite repeated threats from U.S. President Donald Trump to stop manufacturing in India, Apple Inc. is doubling down on its Indian manufacturing ambitions. The company is not only expanding iPhone assembly lines in India, but now also increasing the localisation of the production of specialised machinery critical to the process.
The move comes despite Trump’s repeated pressure on Apple CEO Tim Cook to shift production back to the U.S. from India, including threats of a 25% tariff on iPhones not made domestically. In May, Trump publicly warned that iPhones sold in the U.S. should be “manufactured and built in the United States, not India, or anyplace else,” or face steep penalties.
Trump has imposed 50% tariffs on Indian imports in retaliation for India’s Russian oil purchases. However, smartphones like the iPhone secured a key exemption, allowing Apple to maintain cost competitiveness without immediate price hikes for American consumers. However, the U.S. President can remove that exemption anytime and impose tariff, as this entirely depends on his whims. In May this year, he had threatened 25% tariff on iPhones sold in the USA if they are made in India.
But these tariff threats have done little to derail Apple’s strategy, with India now supplying over 70% of iPhones sold in the U.S., a sharp rise from 31% a year ago. Production hit a record 22.88 million units exported from India in the first half of 2025, up 52% year-over-year, driven by diversification from China amid geopolitical tensions.
Now in a bold escalation, Apple is now venturing beyond component sourcing to manufacture the very capital equipment and tools used in iPhone production. As per a report by Moneycontrol, approximately 35 companies in India are active in this ecosystem, with nearly half, around 17, now directly partnering with Apple over the past 20-24 months. Major players like Titan Engineering and Automation Ltd (TEAL), Jyoti CNC Automation, Bharat Forge, and Wipro are supplying these machines, alongside smaller non-Chinese firms establishing local operations.
These companies make equipment used in the assembly of iPhones, and they are used after Surface Mount Technology (SMT) line production. In the SMT process, various electronic components and microchips are mounted onto printed circuit boards with micro-precision.
Apple holds the know-how and Intellectual Property Rights for these machines. “There are different types of machines required and that’s where Apple is localising the manufacturing of this machinery in India,” the source quoted by Moneycontrol said.
The report added that Apple’s Indian partners are also helping miniaturise capital equipment for electronics, especially smartphones. “With Apple’s IP and know-how, these companies are helping build the tools required for iPhone production,” the source reportedly said.
“This localization addresses logistical risks, cuts costs, and builds resilience,” one source further said.
The development comes amid China increasing restrictions on exports of critical machinery to India. Apple intends to match China’s production sophistication within two to three years in India.
Beijing has halted machinery shipments to Indian facilities run by Apple’s assemblers like Foxconn, Tata Electronics, and Jabil. The Chinese government has also recalled Chinese experts from India and has urged its firms to shutter India operations. Apple understands this escalating issue and is working to mitigate it.
Apple’s broader India footprint now spans five factories, including two new plants, producing iPhones and AirPods. The company engages 35-40 suppliers for components like batteries, chargers, and cables, achieving about 20% domestic value addition. The govt of India aims to push this to 30-40% via schemes like ECMS 2.0.
The report added that Apple is also engaging with Indian firms to explore joint ventures with Chinese, South Korean, Taiwanese and Japanese companies for the local production of critical components such as displays and camera modules. For example, Foxconn’s Yuzhan Technology investing $1.5 billion in a Tamil Nadu facility.
Despite Trump’s threats and Apple’s pledge of $100 billion in U.S. investments over four years, India’s low costs and maturing ecosystem make relocation to the U.S. unlikely. While China still dominates with 157 of Apple’s 470 global suppliers, India’s rise, from 14% of iPhone production in 2024 to a targeted 25% by year-end, positions it as a resilient alternative.
With iPhone 17 production in India ramping up, the tech giant’s India bet signals confidence that tariffs, while disruptive, won’t halt the “Make in India” momentum.