Apple Make in India Faces Bigger Threat from China Than Trump
Apple’s ambitious ‘Make in India’ initiative, which has firmly placed India on the global technology manufacturing map, is now facing an unprecedented challenge. While global analysts previously considered U.S. President Donald Trump’s tariff threats as the biggest obstacle to Apple’s India expansion, China has now adopted a strategy that is proving to be far more dangerous.
According to a recent Bloomberg report, Beijing has imposed restrictions on Chinese engineers and suppliers from travelling to India and Southeast Asia. These experts play a crucial role in setting up new manufacturing units, implementing technical infrastructure, and ensuring the smooth functioning of production lines. This move has the potential to severely disrupt Apple’s iPhone production in India.
Trump’s Threats vs China’s Moves
Donald Trump has repeatedly warned Apple on his social media platform Truth Social and in public forums that if it continues to manufacture iPhones in India, a 25% tariff would be imposed on every iPhone sold in the United States. Trump recently wrote, “Build iPhones in the U.S., not in India or any other country. Otherwise, face a 25% tariff.” This statement is seen as a major challenge for Apple, given that the U.S. remains its largest market, with around 60 million iPhones sold annually.
However, experts believe that China’s geopolitical strategy poses a far more serious threat than Trump’s rhetoric. According to Bloomberg Opinion columnist Mihir Sharma, “China is systematically disrupting Apple’s expansion in India to maintain its dominance in global manufacturing.”
Patrick McGee, author of the book ‘Apple in China’ and former Financial Times journalist, stated, “China has learned a lot from American technology. Now, it doesn’t want India to follow the same path and threaten its supremacy.”
Apple’s ‘Make in India’ Journey
Apple began producing iPhones in India in 2017, when Taiwanese company Wistron started assembling the iPhone SE near Bengaluru. In 2019, Foxconn began iPhone production at its factory in Sriperumbudur, Tamil Nadu. Currently, Apple has three major manufacturing partners in India — Foxconn, Pegatron, and Tata Electronics.
In the financial year 2024-25, Apple’s manufacturing value in India rose by 60%, reaching $22 billion. Of this, iPhones worth $17.4 billion were exported, establishing India as a key hub in Apple’s global supply chain.
Foxconn, Apple’s largest manufacturing partner, is strengthening its presence in India. The company recently announced an additional investment of $1.5 billion and is setting up a 300-acre new campus in Bengaluru that will employ 30,000 people — the largest investment project by any foreign company in India to date.
China’s Fear: India Could Become the New Tech Hub
China fears that if Apple’s technology and processes fully shift to India, the country could emerge as a future rival in tech manufacturing. An iPhone comprises around 2,700 parts sourced from 187 suppliers across 28 countries. A significant portion of these components — including screens, batteries, camera modules, circuit boards, and rare earth magnets — are sourced from China.
Over decades, China has built a unique supply chain ecosystem that is unmatched in cost and efficiency. India’s ecosystem is still developing, and this gap is something China is actively exploiting. By preventing its engineers and suppliers from working in India, Beijing has delayed the setup of Apple’s production lines.
China’s ‘Tech Sabotage’ Strategy
China’s strategy isn’t limited to travel restrictions. It is also affecting the operations of Apple’s Chinese suppliers in India. Several companies have reportedly been denied permission to operate in India under the pretext of ‘sensitive industry travel restrictions.’
This directly impacts Apple’s production in India. High-end machinery still requires Chinese technicians for installation and operation. In their absence, production setups are delayed, costs increase, and timelines are disrupted.
In addition, China has reportedly delayed or blocked shipments of equipment from Apple’s suppliers. Foxconn, for instance, has faced repeated delays or rejections in its export clearance applications.
Is iPhone Production in the U.S. Even Feasible?
Donald Trump’s claim that Apple should manufacture iPhones in the U.S. is practically unviable. Apple CEO Tim Cook stated in a 2017 interview with Fortune, “We don’t go to China because of low labour costs. We go because of the large pool of skilled engineers and suppliers in one place.”
The U.S. lacks the skill base and infrastructure necessary for large-scale manufacturing of complex products like iPhones. The cost of assembling an iPhone in China is around $30, while in the U.S., it could reach up to $300. If all parts were manufactured in the U.S., the cost would rise even further.
India, on the other hand, has the potential to bridge this gap. With low-cost labour, a growing skilled workforce, and government initiatives such as ‘Make in India’ and Production Linked Incentive (PLI) schemes, India offers an attractive destination for Apple’s manufacturing ambitions.
Strong Support from the Indian Government
The Indian government remains in close contact with Apple. A senior government official told CNBC-TV18, “Apple has assured us that there will be no change in their investment strategy in India.”
Bank of America analysts estimate that by the end of 2025, Apple will produce nearly 25 million iPhones in India — enough to meet 50% of U.S. demand. This would not only reduce dependency on China but also establish India as a global manufacturing hub.
The government has taken several steps to boost electronics manufacturing, such as reducing import duties on mobile phone parts and establishing electronics manufacturing clusters in states like Tamil Nadu and Karnataka.
Challenges and the Road Ahead
The path ahead for Apple in India is not without challenges. On one hand, there are Trump’s tariff threats, and on the other, China’s strategic obstructions. Moreover, India still needs to strengthen its supply chain ecosystem. High-end components still need to be imported, which increases costs.
However, India also has a tremendous opportunity. If the government continues to invest in infrastructure, skill development, and policy support, Apple can not only sustain its presence in India but may even surpass China. Growing investments from partners like Foxconn and Tata are strong indicators that India is moving in the right direction.
A Historic Opportunity for India
Apple’s iPhone production in India is more than just a corporate expansion — it represents a major step toward India’s technological self-reliance. If India capitalises on this opportunity, ‘Make in India’ could become a symbol of the country’s strength in the global tech industry.
Despite China’s strategies and Trump’s threats, India has the capability to become a reliable partner for global giants like Apple.
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