Apple is ramping up iPhone production across five Indian factories just as the White House escalates pressure on New Delhi over its Russian oil purchases. The timing isn't coincidental—as Treasury Secretary Scott Bessent accuses India of "profiteering" from the Ukraine war, Apple's supply chain diversification strategy suddenly looks prescient.
Apple just made its biggest bet on Indian manufacturing yet, and the timing couldn't be more loaded with geopolitical significance. As Treasury Secretary Scott Bessent publicly accused India of "profiteering" from Russian oil sales during a heated CNBC Squawk Box interview Tuesday, news broke that the iPhone maker has quietly expanded production across five Indian factories in preparation for its iPhone 17 launch.
The escalation is swift and serious. President Donald Trump already hiked tariffs on India to 50% earlier this month, with Bessent warning that "secondary tariffs for buying the sanctioned Russian oil" are now in play. Trump's ultimatum is stark: reach a Ukraine peace deal by September, or face tariffs "at about 100%" on Russia's trading partners.
Bloomberg's exclusive reporting reveals Apple's expansion includes new plants operated by Tata Group and contract manufacturer Foxconn Technology, with sources indicating the company plans to manufacture a new iPhone 17e model in India next year. Apple declined to comment, but the strategic implications are clear.
This isn't Apple's first rodeo with supply chain geopolitics. The company has been systematically reducing its China dependence since trade tensions first flared, and the numbers tell the story. Canalys data from May showed iPhone shipments from India to the US exploded 76% as companies scrambled to diversify ahead of potential restrictions.