Apple launched the much-awaited iPhone 17 on September 9, defying geopolitical headwinds and complications in its effort to decouple its supply chain from China.

The company will produce all the U.S.-bound iPhone 17 models in India, according to Bloomberg. This is the first time Apple is shipping all new variants of an iPhone from the South Asian country right from the time of their launch.

Since last year, Apple has faced several bumps in its efforts to reduce dependence on China.

In January, Rest of World reported that Apple’s contract manufacturer, Foxconn, had stopped sending Chinese workers to its Indian iPhone factories, and shipments of specialized manufacturing equipment meant for India had been held up in China.

To fill the gaps left by Chinese workers, the company brought specialized workers from Taiwan and Vietnam. 

Despite these odds, India has already surpassed China as the leading exporter of smartphones to the U.S., according to global technology and market research firm Canalys. 

While Apple fans celebrate the launch of the iPhone 17, Rest of World spoke with phone manufacturing and supply chain experts to understand why this launch is a geopolitical landmark.

The quotes have been edited for length and clarity.

iPhone 17, “a geopolitical tool”

Ankur Bisen, supply chain expert and senior partner at management consulting firm The Knowledge Company

“It’s a good sign that Apple has gone ahead with a new iPhone that has a distinct Indian imprint as far as assembly is concerned. It proves the iPhone is no longer just a commercial product but a geopolitical tool, shaped by the U.S.-China tensions and Trump’s pressure on Apple.

China has used tactics like recalling Foxconn workers to exert leverage, but economics will ultimately prevail because both Apple and China know what parts of the supply chain are non-critical versus critical.

The iPhone 17 launch, with India playing a visible role, gives Apple a sense of achievement and validation. It proves that its India strategy can withstand political pressure. But the real disruption risk lies with Trump, whose unpredictability and push to bring manufacturing back to the U.S. could still unsettle Apple’s plans.”

“Make in India” and Apple’s manufacturing ecosystem

Prabhu Ram, vice president of industry research at global market research firm CyberMedia Research

“India is a key spoke in Apple’s strategy to steer supply chain resilience and growth momentum over the next decade.

The rising maturity of the Make in India initiative is, in particular, demonstrated by the fact that the entire iPhone 17 line-up is being manufactured in India at the outset, alongside China.

Apple accounted for nearly 70% of India’s smartphone exports, with shipments jumping 44% year-on-year on the back of sustained global demand for the latest-generation iPhones in the first half of 2025. Supported by stronger local supply chains and proactive policy incentives, India is set to maintain robust export growth — generating significant direct and indirect employment across Apple’s ecosystem, particularly in high-tech manufacturing.”

U.S. tariffs and iPhone prices

Chiew Le Xuan, research manager at technology research and analysis firm Omdia

“IPhone shipments from India to the U.S. surpassed 11 million units in Q2 2025, compared with roughly 3 million from China. Nearly half of all iPhones sold in the U.S. last quarter were assembled in India, with Foxconn leading production and Tata rapidly scaling operations following the Wistron acquisition.

This shift underscores the pivotal role of India in Apple’s strategy to mitigate trade risk and maintain operational resilience.

As Apple’s second-largest market, defensive maneuvers from China could potentially deter Apple’s ambitions on diversification.

Apple is navigating a delicate balance between its two largest markets — the U.S. and China — amid rising trade tensions. Tariffs have already added an estimated $900 million in costs, with expectations of surpassing $1 billion in Q3 2025.

Concurrently, a weakening U.S. dollar is heightening pricing pressures. We have seen iPhone 17 prices largely remain stable across the world, but due to the weakening dollar, prices worldwide are increasing “relative” to the U.S. However, the healthy margins of the iPhone would help Apple cushion the cost impact. But longer-term uncertainties would definitely pose a challenge.”

Manufacturing shifting back to the U.S.

Tarun Pathak, research director at Counterpoint Research

“With this launch, Apple now has the widest range of its iPhone portfolio ever. It has one of the most resilient supply chains in the world, and we expect that the manufacturing ramp-up in India will continue, almost running at full capacity.

So China, India, and then Latin America — in that order — will remain a priority for Apple.

Overall, it’s a positive movement. But bringing large-scale manufacturing jobs back to the U.S. is still a long way off. Countries like China and India offer clear advantages. The limitations of manufacturing in the U.S., especially around labor costs, remain.

That said, the nature of manufacturing could evolve. For example, Apple could expand areas that are less labor-intensive, such as component design or specialized assembly. But large-scale manufacturing shifts are a long-term play, not something that can be decided in one or two years.”