US tariffs against China that could raise prices of iPhones significantly are prompting Apple to shift manufacturing to India, which has lower tariffs. But how much of that manufacturing will shift and how soon it will happen could be complicated by special iPhone editions expected for release in 2027, a report suggests.
According to Mark Gurman's Power On newsletter for Bloomberg, Apple has plans for two special editions to mark the 20th anniversary of the iPhone. One could be a foldable iPhone that has been rumored and another would be a Pro model that would include more glass elements.
Gurman says that the chances are "slim" that Apple would build those new devices in India. He said: "While Apple's manufacturing in India has reached parity with China in terms of current iPhone quality, the 20-year anniversary models are extraordinarily complex. They'll require new parts and production techniques, making it far from a certainty that Apple will be able to build those outside of China. At some point, yes, but certainly not by the year 2027."
A representative for Apple did not immediately respond to a request for comment.
Expectations for 2027
Due to the fact it will mark 20 years since the release of the first iPhone, there are high expectations that Apple will do something special for that year's line of iPhones -- as it did with the dramatic shift to the iPhone X for the 10-year anniversary.
Some analysts have speculated that an all-glass "Ultra" edition might be in the works, which would place the front-facing camera below the screen and do away with the real estate given to the current dynamic island screen area.
Muzammil Hassan, head of patent portfolio management and monetization in India for Quandary Peak Research, said that Gurman's analysis makes sense, especially if Apple decides to differentiate the manufacturing of basic iPhone models with those that have new and premium designs.
"It might be difficult to shift [higher-end iPhones] out of China, given the expertise and trained ecosystem they have built in factories in China," Hassan said.
Hassan added it's likely Apple will double production of iPhones in India to about 80 million units this year and expand to close to 100 million by next year. "It will be interesting to watch if all of these close to 100 million iPhones are going to be just the base models," he said.
The top-of-the line 2027 model of the product could be a limited-edition iPhone at a higher price range, he added. In addition to the hardware build, Hassan said that Apple users also want enhanced AI beyond what they've seen so far of Apple Intelligence, as well as better photo-editing tools and more intelligent photo organization going forward.
English (US) ·