Apple has been slowly accelerating plans to shift iPhone production to India, but since US President Donald Trump announced his Inauguration Day tariffs, the company is rushing to manufacture all US-bound iPhones in India as early as next year. China is actively unhappy with Apple moving away from its land and isn’t leaving a stone unturned to hamper Apple’s efforts.
Per Financial Times, Apple has a plan to source all iPhones sold in the US from India by the end of 2026.
The US accounted for about 28 percent of Apple’s 232.1 million global iPhone shipments in 2024, according to the International Data Corporation, meaning Apple would need to manufacture more than 60 million iPhones annually in India to meet this target.
Now, this would require doubling current iPhone output in the country, where the company has been steadily building capacity with contract manufacturers Tata Electronics and Foxconn.
Trade war pushes Apple’s production shift to India
The push comes as US President Donald Trump imposed significant tariffs, as much as 125%, on Chinese imports, potentially threatening Apple’s supply chain, which is heavily based in China. While Trump announced a 90-day pause on new tariffs this week, excluding China, the threat of future trade restrictions remains substantial.
That’s the reason why Apple has been trying to make its manufacturing footprint in India bigger than before. Reuters reported that the company chartered six cargo flights carrying approximately 600 tons of iPhones, estimated at 1.5 million devices, from India to the United States since March.
To facilitate these shipments, Apple worked with Indian authorities to establish a “green corridor” at Chennai airport, reducing customs clearance time from 30 hours to just six hours. The company also temporarily extended operations at Foxconn’s largest Indian factory to include Sundays to boost production.
Apple wants to bet bigger on India, but China’s not letting go easily
Despite Apple’s determination to diversify its manufacturing base, Chinese authorities appear to be impeding these efforts. The Information reported that Chinese officials have been delaying or blocking shipments of iPhone manufacturing equipment to India without explanation.
“In many cases, Chinese authorities are delaying or blocking shipments of iPhone equipment to India without explanation,” The Information noted, adding that approval times for exporting iPhone-making equipment from China to India have increased from two weeks to as long as four months.
In one instance, Chinese authorities reportedly refused to allow one of Apple’s Chinese equipment suppliers to export machinery needed for iPhone 17 trial production to India. The supplier ultimately established a front company in Southeast Asia to circumvent these restrictions.
Currently, Apple assembles roughly 20% of iPhones in India, but The Information reports the company has “a long-term goal of moving about half of its iPhone production out of China.” This shift represents a dramatic reversal for a company that spent nearly two decades building its manufacturing base in China, which powered Apple’s rise to becoming a trillion dollar giant.
