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China is still dominated by the iPhone manufacturing. Its share in the company’s global iPhone shipment in 2024 was about 28%.
China has stopped delivery of essential machines and parts to India. These machines and parts are very important for sectors like electronics and automobiles.
In addition, iPhone maker Foxconn in India has directed more than 300 Chinese engineers and technicians to withdraw from India. According to reports, China has done this to influence India’s manufacturing sector.
The departure of Chinese workers may slow down in factories
Sources said, “The number of Chinese employees is less than 1%, but they play an important role in important operations like production and quality management. The work in factories may slow down with the Chinese government’s instructions to withdraw their citizens.
- Lastly, China also stopped supply of rare economy magnets used in electric vehicles (EV) and electronics. In such a situation, both these steps of China are being seen as a strategy to weaken the growth of India’s manufacturing sector.
- China is perhaps adopting a Tit-for-Tat strategy with India, as their corporate workers have faced a lot of difficulties in getting a business visa. An industry source said, “We are planning to send a report to the government on this matter.”
An employee of a Foxconn unit in India. The government is trying to promote investment in its manufacturing sector.
China’s dominance on iPhone manufacturing
China is still dominated by the iPhone manufacturing. Its share in the company’s global iPhone shipment in 2024 was about 28%.
Four years ago India started iPhone assembling
India began to assemble a large scale iPhone 4 years ago, and now it makes the fifth of global production. Apple plans to make most of the iPhones for the US in India by the end of 2026, which has been criticized by US President Trump.
The iPhone should be here for American customers
The President has said that Apple should make an iPhone for American customers in the US itself. But it is not practical to produce iPhone there due to expensive labor costs in the US. On the other hand, if China prevents its engineers from going to America, then Apple’s plan to start gadget assembly in their country will be even more difficult.
The iPhone production has increased rapidly in India in the last few years. In 2024, India created a $ 14 billion value iPhones, and in January-May 2025 exported $ 4.4 billion iPhones to the US. According to Global Trade Research Initiative (GTRI), now 25% iPhones are being made in India.
Trump said at an event with business leaders in Doha, the capital of Qatar- there is no need to install factories in India. India can take care of itself.
Why Apple’s focus on India?
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems such as Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it is not right to depend more in one area. In this context, India is proving to be a low risk option for Apple.
- Cost Advantage: India provides labor at a lower cost than China, which makes it more attractive. In addition, manufacturing at local level helps the company to avoid high import costs on electronics.
- Government incentive: India’s Make in India Insiative and PLI schemes provide financial assistance to companies to increase manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs than China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Foxconn -like partners are training employees to meet the production needs and expand facilities like plants like $ 2.7 billion (₹ 23,139 crore) in Karnataka.
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