Apple is planning to shift the assembly of all iPhones sold in the United States to India by next year, a Financial Times report said on Friday- a bold move fueled by President Donald Trump’s renewed tariff threats on Chinese imports.
The plan is part of a broader strategy to diversify Apple’s supply chain away from China, which still dominates most of the tech giant’s manufacturing infrastructure. If successful, this shift would see over 60 million iPhones produced annually in India by 2026 – doubling current output, the FT report said.
Why it matters
The US is Apple’s most important market. In 2024, it accounted for roughly 28% of the company’s global iPhone shipments, according to IDC. Moving the production of US-bound iPhones out of China not only helps Apple dodge steep tariffs but also reduces long-term geopolitical risk tied to US-China relations.
More immediately, the pivot is a reaction to Trump’s “reciprocal tariff” agenda. His administration slapped China with tariffs that once hit as high as 145% and still include a 20% duty on smartphones. Though some electronics like phones were recently exempted, that relief appears temporary. Trump has also floated new levies aimed at semiconductor-heavy products, potentially impacting Apple’s entire device line.
Zoom in
In the fiscal year ending March 2025, Apple assembled $22 billion worth of iPhones in India – a 60% year-over-year increase, according to a Bloomberg report. About 20% of the world’s iPhones now come from India, a figure poised to grow rapidly.
Most of this production takes place at Foxconn’s sprawling campus in Tamil Nadu, along with Tata Electronics, which acquired Wistron’s operations and now also oversees Pegatron’s production. This marks a turning point for Apple’s manufacturing strategy, which had remained largely centered in China for nearly two decades.
India’s government, under Prime Minister Narendra Modi, is helping pave the way. Apple is tapping into production-linked incentives and may benefit from new $2.7 billion subsidy plans aimed at boosting electronics manufacturing and semiconductors.
The big picture
Apple’s urgency stems from a trade shock in early 2024, when Trump’s tariffs knocked $700 billion off the company’s market value. In response, Apple began exporting Indian-assembled iPhones to the US – a move designed to beat the tariff clock, the FT report said.
Still, challenges remain. While assembly is the final stage in the iPhone production process, Apple is still heavily reliant on Chinese suppliers for components, the FT report added. Experts say shifting the entire supply chain could take years. Bloomberg Intelligence estimates that moving just 10% of Apple’s production out of China could take up to eight years.
The shift also counters Trump’s own call for companies to “bring jobs home.” Analysts say the US lacks the labor force and infrastructure to support large-scale iPhone assembly, making India a more viable alternative.
What they’re saying
“We believe this is going to be an important move for Apple to be able to maintain its growth and momentum,” Daniel Newman, CEO of the Futurum Group, told the Financial Times. “We are seeing in real time how a company with these resources is moving at relative light speed to address the tariff risk.”
Apple declined to comment for the FT report.
Between the lines
The iPhone maker’s pivot also aligns with broader supply chain reshuffling across the tech industry. The pandemic exposed the fragility of China-dependent manufacturing, especially during Covid-era lockdowns at Apple’s largest Chinese plant. Now, geopolitical risk is compounding that concern.
To get ahead of potential supply disruptions, Apple shipped 57.9 million iPhones in Q1 2025 — a 10% jump from the same period last year — as it raced to build inventory in the US before tariffs could take effect, IDC reported.
Consumers also noticed: Apple Stores saw a spike in demand this spring, as shoppers rushed to buy iPhones before potential price hikes kicked in.
What’s next
Apple is set to report earnings next week. Analysts expect the company to field tough questions about the financial impact of tariffs, India’s role in the company’s long-term strategy, and whether production goals for 2025 are realistic.
While Apple’s transition won’t fully sever its ties with China, the message is clear: The iPhone’s future – at least in the US – will increasingly be ‘Made in India’.
(With inputs from agencies)
