Apple plans to shift the assembly of all iPhones sold in the United States to India by as early as next year, as the tech giant accelerates efforts to reduce its reliance on China, the Financial Times reported on Friday.
Citing sources familiar with the matter, the report said Apple aims to manufacture over 60 million US-bound iPhones annually in India by the end of 2026.
This would require doubling current iPhone output in India within just over a year—a rapid timeline compared to Apple’s nearly two-decade ramp-up in China.
The shift comes amid escalating trade hostilities between Washington and Beijing. President Donald Trump recently imposed a sweeping 145% tariff on Chinese goods, prompting retaliatory measures from China, including a 125% levy on US imports.
Though electronics were initially exempt from the tariffs, Trump clarified that the exclusion was temporary.
Apple’s shares have taken a hit, with market capitalization reportedly losing up to $700 billion over investor concerns about supply chain exposure.
The company currently relies heavily on Chinese production partners like Foxconn (SS:601138), but recent disruptions—ranging from civil unrest to regulatory scrutiny in China—have pushed Apple to expand in India.
The firm has been steadily increasing its Indian manufacturing footprint through partnerships with Tata Electronics and Foxconn, both of which operate large-scale assembly facilities in the country.
In April, Apple was seen expediting shipments from India to the US, underscoring the urgency of its supply chain pivot.
While China remains a core manufacturing hub for Apple’s global devices, the shift in US-bound iPhone production marks a strategic milestone in the tech giant’s diversification strategy.
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