By Apple iPhone Production in India Faces New Roadblocks as China Restricts Support
Apple iPhone production in India is under pressure as China takes strategic steps to slow down the tech giant’s transition from Chinese manufacturing hubs to Indian facilities. While trade tensions and tariffs from former U.S. President Donald Trump were once considered the primary obstacle, recent developments indicate that Beijing’s calculated interference may now pose a much more significant challenge.
Apple iPhone Production in India Threatened by Beijing’s Restrictions
According to a detailed Bloomberg report, China is actively blocking skilled Chinese engineers and key suppliers from assisting Apple’s operations in India and Southeast Asia. This move is seen as a direct attempt by Beijing to protect its dominance in global electronics manufacturing.
Despite facing geopolitical headwinds, Apple’s India operations have grown at an impressive rate. The company’s manufacturing value in India has surged by 60% over the past year, reaching a record $22 billion. Furthermore, India has become a significant export hub, with over $17 billion worth of iPhones shipped abroad.
China’s Strategic Interference in Apple iPhone Production in India
Beijing’s interference is rooted in strategic concerns. Apple’s efforts to diversify away from China are perceived as a threat to China’s long-established position as the world’s electronics factory. According to Bloomberg Opinion columnist Mihir Sharma, several experienced engineers and key suppliers who have historically supported Apple’s global expansion are now being denied travel permissions to India and Southeast Asia.
This restriction directly undermines Apple’s ability to recreate its highly efficient Chinese manufacturing ecosystem in India, posing serious logistical and operational challenges.
Why Apple iPhone Production in India Relies on Chinese Talent
Much of Apple’s success in China has been built upon decades of technical collaboration between American companies and Chinese engineers and suppliers. Former Financial Times journalist and author of Apple in China, Patrick McGee, highlights how this collaboration contributed to China’s meteoric rise in manufacturing capabilities. China’s “Made in China 2025” plan was largely fueled by such foreign partnerships and knowledge transfers.
Now, Beijing is clearly signaling that it does not intend to allow similar technology sharing to support Apple’s growth in India. The denial of travel for engineers, restrictions on supplier operations, and other barriers suggest that China is working to maintain its manufacturing monopoly by cutting off key support channels.
Apple iPhone Production in India Faces Supply Chain Constraints
The challenges go beyond personnel. China holds substantial control over essential resources and components used in iPhone production. For instance, over 90% of the world’s supply of rare earth permanent magnets—crucial for smartphone components—is dominated by China. The country also processes a majority of the raw materials used in iPhone parts like batteries, touchscreens, and chipsets.
Given that each iPhone consists of around 2,700 components sourced from 187 suppliers across 28 countries, China’s grip on the manufacturing supply chain means it has multiple levers to influence or disrupt Apple’s global operations.
What This Means for Apple’s Future in India
Despite these setbacks, Apple remains committed to expanding its presence in India. The company sees the country as a critical growth market and a potential production powerhouse. However, the increasing friction with China could mean a slower and more challenging path forward.
For India to truly emerge as a global manufacturing hub for iPhones, it will require not just investment from Apple but also strategic support from governments and supply chain partners. Local upskilling, infrastructure development, and reduced dependence on Chinese components will be key in building a resilient and independent production ecosystem.
