Apple to Keep iPhone Anniversary Models in China Amid US-China Tensions

Apple plans to manufacture its 20th anniversary iPhone models in China despite broader efforts to diversify production to India, according to Bloomberg's Mark Gurman. The decision stems from the complex design of the anniversary models planned for 2027, which will reportedly include a foldable iPhone and a redesigned iPhone Pro with more glass elements. These devices require specialized manufacturing capabilities currently available in Apple's established Chinese production facilities.

The report emerges against a backdrop of escalating trade tensions between the United States and China, with the Trump administration implementing a new round of tariffs. According to The Financial Times, Apple intends to respond to these trade pressures by assembling all U.S.-bound iPhones in India by the end of 2026. This manufacturing shift represents a significant adjustment to Apple's supply chain strategy in direct response to U.S. trade policy.

Despite the broader move toward Indian manufacturing for standard models, the anniversary iPhones present unique challenges that appear to necessitate Chinese production. Gurman notes that Apple has never launched a major new product design outside of China during its first production cycle. The specialized infrastructure and manufacturing expertise required for the new designs, which include novel components and production techniques, remain concentrated in Apple's Chinese manufacturing hubs.

The foldable iPhone is expected to feature a book-style design that opens horizontally to reveal an internal display comparable to an iPad mini. Industry reports suggest this premium device could carry a price tag exceeding $2,000, positioning it as a luxury product within Apple's lineup. The other anniversary model might feature an all-screen design with under-display camera technology, further demonstrating the advanced manufacturing requirements that currently favor Chinese production facilities.