In a dramatic turn of events, China has ordered its workers to return home from India, where they had been helping set up Apple’s iPhone 17 assembly lines. This comes as a direct response to Apple shifting part of its production to India, mainly due to the rising tariffs imposed by the United States.
The tensions between China and India have only intensified over the last few years, and this move is seen as retaliation.
Apple’s decision to increase production in India has paid off. In fact, the country’s iPhone exports have surged dramatically this year, surpassing the total exports of previous years in just a few months. With the added pressure of increased demand, Apple has been pushing Indian airport authorities to streamline the process of shipping these devices to the U.S., in order to meet global demand.
As a result of China’s latest move, most of the workers that had been deployed to India have been called back. These workers played a key role in setting up Apple’s manufacturing infrastructure in the country. While sources claim this decision will not affect the quality of the iPhone 17 models, the speed of production is likely to be impacted.
However, Apple is facing several other challenges. The company had planned to include 12 GB of RAM in all iPhone 17 models, but supply chain shortages are now putting that plan in jeopardy. Additionally, iPhone 17 Air displays have been experiencing cracking issues during evaluations. CEO Tim Cook is reportedly concerned about these setbacks, with Apple’s highly anticipated project, Apple Intelligence, also encountering difficulties.
The complications don’t stop there. On top of the challenges from China’s actions, U.S. President Donald Trump has also expressed dissatisfaction with Cook’s decision to move production to India. Trump has urged Apple to bring its operations back to the U.S., a move analysts say is highly unlikely due to the soaring costs of manufacturing there. Meanwhile, competitors like Samsung, who moved production out of China years ago, have managed to avoid such hurdles.
Apple is also dealing with manufacturing issues in other areas, with the much-anticipated foldable iPad being postponed due to prohibitive costs. Despite these setbacks, Apple is still pressing ahead with its plans for the iPhone 17, including the integration of 120 Hz displays across the entire lineup.