Apple Inc. is accelerating its plan to relocate the manufacturing of all iPhones sold in the United States from China to India by the close of 2026. This strategic move aims to reduce the impact of steep U.S. tariffs on Chinese imports and ease geopolitical risks associated with its current supply chain.
Currently, Apple assembles about 40 million iPhones annually in India, but to meet this goal, production there will need to more than double to over 80 million units per year, surpassing the 60 million iPhones it sells annually in the U.S. The shift reflects a broader effort by Apple and its manufacturing partners, including Foxconn and Tata Electronics, to diversify production away from China, where about 80% of U.S.-bound iPhones are currently made.
This transition has been hastened by the ongoing trade tensions and tariffs imposed during the Trump administration, which at one point levied up to 145% duties on Chinese goods. Although some tariffs on electronics were temporarily suspended, the financial risks remain significant. India, despite having higher manufacturing costs-estimated to be 5-10% above China-offers a more tariff-friendly environment and is becoming a key hub for Apple’s supply chain expansion. Foxconn and Tata are actively expanding their manufacturing facilities in southern India to support this surge in production.
In the fiscal year ending March 2025, Apple assembled $22 billion worth of iPhones in India, marking a 60% increase over the previous year. The company has also exported iPhones valued at $17.5 billion from India, underscoring the country’s growing role in Apple’s global manufacturing network.
This move not only helps Apple mitigate tariff-related costs but also aligns with India’s push to become a major smartphone manufacturing center. Apple’s CEO Tim Cook has been reported to engage in high-level discussions to ensure a smooth transition and to protect the company from tariff impacts, including securing temporary exemptions on some products.
While China remains Apple’s largest production base, the shift to India for U.S.-bound iPhones represents a significant realignment of its global supply chain, driven by economic and geopolitical factors that continue to reshape the tech manufacturing landscape.
