Apple Inc. is moving to reshape its global supply chain, with plans to shift production of all iPhones destined for the United States from China to India.
This transition is seen as a strategic response to evolving trade policies and tariffs, particularly those introduced by former President Donald Trump.
The decision comes as part of Apple’s broader efforts to diversify its manufacturing footprint beyond China, where more than 75% of its iPhones are still produced. The company is aiming to have all US-bound iPhones assembled in India by the end of 2026, a significant acceleration of a shift that began in recent years. Currently, Apple sells over 60 million iPhones annually in the United States, a market that accounts for more than a quarter of its global sales.
One of the main catalysts for this move has been the imposition of steep tariffs on Chinese imports. Some of these levies have reached over 100%, raising costs on goods such as smartphones. While certain electronics have received temporary exemptions, the ongoing uncertainty has prompted Apple to expedite its relocation plans. The shift to India is expected to mitigate the risk of further tariff-related disruptions.
Apple has already begun ramping up its operations in India. Over the past fiscal year, the company produced approximately 40 million iPhones in the country and exported devices valued at around $17.5 billion. Foxconn and Tata Electronics, two of Apple’s key manufacturing partners, are expanding their facilities to accommodate the increased demand. Production in India is projected to double, crossing 80 million units annually in the near future.
While India was initially subject to a reciprocal tariff of 26%, these have since been paused, and discussions are underway between New Delhi and Washington on a potential bilateral trade agreement. US Vice President JD Vance recently indicated that negotiations are progressing well.
The move is also seen as a way for Apple to reduce its dependency on a single country for manufacturing, especially in light of past disruptions such as the COVID-19 lockdowns that affected Chinese factories. Nonetheless, China remains a vital part of Apple’s supply chain, particularly for components and pre-assembled modules.
Despite the transition, some analysts have noted challenges ahead. Assembling iPhones in India requires a reliable infrastructure and skilled workforce, and Apple is still dependent on Chinese suppliers for many parts. Even so, the company is leveraging Indian government incentives aimed at boosting local manufacturing, aligning its business strategy with Prime Minister Narendra Modi’s vision of transforming India into a global production hub.
Apple has not officially commented on the reports, but market analysts view the shift as a proactive step to safeguard its business interests. The company is expected to provide further insight during its upcoming quarterly earnings report.
The Independent, Bloomberg, and the Financial Times contributed to this report.
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