Apple and the iPhone 17 gamble.

(Dan Tri Newspaper) - In a historic move, Apple is shifting the entire production line for all four iPhone 17 models to India.

This marks a new milestone in the tech giant's more than a decade-long effort to diversify its global supply chain and reduce the risks of over-reliance on a single market.

According to Bloomberg, for the first time, all the latest models, including the high-end Pro series, will be shipped from the South Asian country right from launch day.

This move not only represents a shift in logistics but also signals a reshaping of Apple's long-term strategy.

Supply chain relocation trends

Apple Store in China (Illustrative image: ST).

For many years, international technology corporations have taken advantage of low-cost, large-scale manufacturing in Asia. However, the new landscape, with its fluctuating trade policies, tariffs, and the risk of supply chain disruptions, has prompted companies to seek alternative manufacturing destinations.

“Few consumers realize how significant Apple’s expansion of production beyond a single market is. Diversifying into countries like India and Vietnam shows that resilience is now just as important as supply chain efficiency,” said Mark Vena, principal analyst at SmartTech Research.

According to Stephen Ezell from the Information Technology and Innovation Foundation (ITIF), many American companies are increasingly focusing on safer and more flexible manufacturing environments. In this context, India is emerging as a potential destination to meet the requirements for manufacturing complex technology products.

A gamble on quality and profit.

However, leaving a production ecosystem that has been optimized for many years is not without risks.

Rob Enderle, chief analyst at Enderle Group, issued a warning: “The extremely low manufacturing costs in China are a key factor in Apple’s incredible profit margins.”

In terms of both finances and quality, manufacturing in China has been extremely effective for Apple.

He predicted that iPhone quality might decline in the initial phase as new assembly teams in India need time to train and adapt.

However, for a brand that places such importance on reputation as Apple, sacrificing quality is unacceptable. Mark Vena countered: "Apple understands that its reputation depends on ensuring that goods Made in India are equivalent to goods Made in China in terms of accuracy and reliability."

He believes that Apple has been investing heavily in supervision and training to bring manufacturing in India up to the company's global standards.

India: The New Promised Land

So why India? The reason isn't just about diversifying the supply chain. India offers Apple two parallel strategic benefits.

First, it's a way to avoid tariff barriers. "India imposes very high taxes on products not manufactured domestically. So Apple's initial motivation was to manufacture products in India to sell to the country's 1.3 billion people without being subject to tariffs," explains Bob O'Donnell, founder of Technalysis Research.

The iPhone 17 is expected to have many major upgrades (Illustrative image: ST).

Secondly, and most importantly, India is a huge growth market. "Apple's shift away from China is not just a matter of risk, but also a positioning for the future; by penetrating deeper into the Indian economy , Apple is strategically aligning manufacturing with demand," Vena emphasized.

Ultimately, this shift is not merely a defensive response to geopolitical risks. It is an offensive move, a carefully calculated gamble to lay the groundwork for future growth.

According to Vena, this move could shape Apple's next decade, just as the iPhone itself did in the previous decade.

Source: https://dantri.com.vn/cong-nghe/apple-va-canh-bac-iphone-17-20250820222833377.htm