Apple only shipped the iPhone 16 last month, but it is already working on the manufacturing process for next year’s iPhone 17 models. And in a reported supply chain milestone, India will be where early production units of the base iPhone 17 will be developed.
Shift Away from China Will Only Apply to Base iPhone 17
Apple’s reliance on China for manufacturing has been well-documented. CEO Tim Cook even recently pledged to continue to increase Apple's investment in China, reportedly during a government visit.
But Apple has been working for years to diversify its supply chain to reduce its reliance on China. There are many economic and risk-reduction reasons to diversify.
Apple has reportedly reached a new major milestone in this regard.
Wayne Ma writes in The Information:
For the first time, Apple is using an Indian factory to perform early manufacturing work for next year’s base iPhone 17 model, according to two people with direct knowledge of the matter. The choice of an Indian factory for this phase of iPhone development — figuring out how to turn a prototype designed in Cupertino into a device that can be mass-produced — underscores the progress Apple has made in diversifying its supply chain to India from China and its confidence in the capabilities of Indian engineers. That’s because this work is the most complex and resource-intensive aspect of Apple’s product development, current and former Apple employees say. Known internally as New Production Introduction, or NPI, the work involves tweaking the iPhone’s design and materials and experimenting with different types of equipment and manufacturing processes to ensure millions of iPhones can be made per day in different locations with minimal defects. Most of this development typically happens between October and May.
Ma notes that this shift only affects the base iPhone 17 model.
Apple will still do early production and testing of the iPhone 17 Pro, 17 Pro Max, and the highly anticipated iPhone 17 Air in China.
Still, this is a big deal for all the reasons Ma notes. Historically, it’s been difficult for Apple to replicate the manufacturing expertise it has gained in China elsewhere.
But if things go well with the iPhone 17, we should expect further advancements and expanded production in India in the future.
What do you think of Apple reaching this new milestone? Let us know in the comments.
