Apple to Move Assembly of All US-Sold iPhones from China to India

Apple Inc. is reportedly planning to shift the assembly of all iPhones sold in the United States to India as soon as next year, marking a strategic move away from China, according to the Financial Times.

This decision is likely driven by ongoing trade tensions between the US and China.

The company is aiming to source over 60 million iPhones sold annually in the U.S. from India by the end of 2026, a significant and rapid shift.

This move would require India’s iPhone production to double in just over a year, a much quicker ramp-up compared to the nearly two decades Apple invested in building its production network in China.

Apple has long relied on China as a manufacturing hub, working with third-party contractors like Foxconn to produce a wide range of its products. However, this reliance has made Apple vulnerable to the trade tariffs imposed by the Trump administration.

These tariffs have impacted Apple’s cost structure and supply chain, especially after President Trump reignited a trade war with China earlier in the year.

Despite Trump’s temporary exemption of electronics imports from China, he has made it clear that electronics will eventually face separate tariffs.

With China imposing a 125 percent tariff on US goods in retaliation to the 145 percent tariff levied by the US, the growing uncertainty over trade relations has led Apple to consider alternative production sources like India.

Apple has been gradually increasing its manufacturing capacity in India through contract manufacturers like Tata Electronics and Foxconn. This effort has accelerated in recent years, particularly following disruptions in China due to civil unrest.

Meanwhile, the Financial Times reported that Chinese factories have slowed production as US tariffs continue to bite, and though the US has signaled trade talks with China, Beijing has denied these claims.