iPhone India production: Just as Apple was preparing to boost iPhone India production for its next flagship model, a quiet move from China has thrown a wrench into its plans.
Over 300 Chinese engineers and technicians working for Foxconn Apple’s key supplier have been asked to leave their posts at factories in southern India. While neither Apple nor Foxconn has made any official comment, the silence has raised eyebrows in the industry.
A Strategic Setback for Apple’s India Bet
This isn’t just about shuffling staff. These Chinese engineers were vital to India’s ambitions to become a global electronics hub. They didn’t just build iPhones; they also transferred years of complex know-how and trained India’s local workforce.
Without them, Apple’s carefully built plan to make India its second home for premium manufacturing may hit roadblocks.
For a country hoping to grow iPhone India production rapidly, this talent drain could slow down efficiency and quality training.
China Tightens Its Grip on Talent
Bloomberg reports that the Chinese government has tightened its control over the outflow of skilled workers and key equipment.
This move is part of a larger pattern where China tries to slow down multinationals from shifting production outside its borders.
From restricting rare earth exports to holding back talent for mobile manufacturing, China is quietly resisting the global shift known as the “China plus one” strategy. This time, the impact is being felt directly on the factory floors in India.
Foxconn’s India Journey
Foxconn still manufactures most iPhones in China but has been expanding steadily in India for the past four years. In 2024, India assembled more than $10 billion worth of iPhones, with around $7 billion exported mainly to the US.
With nearly 20% of Apple’s global iPhone output now coming from India, the stakes for iPhone India production have never been higher.
The upcoming iPhone 17 was supposed to mark another leap forward for India’s role in Apple’s supply chain.
More Than Just Apps and Tariffs
India’s earlier actions against China, such as banning apps like TikTok, were mostly symbolic. But China’s latest move pulling out skilled engineers strikes at the heart of India’s electronics dreams.
Instead of a tariff war, China is choosing a subtler but powerful strategy: restrict knowledge transfer. For India, this means local workers now have to catch up without direct mentoring, which could lead to delays in production.
What Lies Ahead
Apple’s push to diversify beyond China began with the US-China trade tensions years ago. Now, it faces resistance from both directions.
While Donald Trump talks about making Apple manufacture at home in America, high costs and lack of large-scale assembly lines keep that idea far from reality.
Meanwhile, China’s invisible pullback could hamper India’s rise as Apple’s next big production base.
Whether Apple can stay on course without hiccups or whether China has found a new way to disrupt the shifting tech supply chain will be clearer as the launch of the iPhone 17 approaches.
For now, India’s dream of becoming a global manufacturing powerhouse remains strong, but the exit of a few hundred skilled hands is a reminder that global supply chains can change with a whisper, not just a bang.
