Apple is fast-tracking its move to reduce reliance on China for manufacturing, aiming to assemble all iPhones destined for the U.S. in India by the end of 2026, as reported by the Financial Times. Meeting this ambitious target would force Apple to double its current iPhone production infrastructure in India, which is part of the company’s multi-year plan to reduce its reliance on the Chinese market for production.
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Apple to Shift iPhone Production to India by 2026 Amid Rising U.S.-China Trade Tensions
Most iPhones are currently made in China by partners like Foxconn. Apple’s American market accounts for about 28 percent of the company’s iPhone shipments worldwide, which reached 232.1 million units in 2024, according to International Data Corporation. The move comes as trade tensions between the United States and China have continued to escalate. Apple stock plunged $700 billion in market value last year after President Trump slapped heavy tariffs on Chinese imports. In response, Apple reportedly expedited shipments of iPhones made in India to the U.S. to avoid the higher tariffs on Chinese products.
It is good timing, as CEO Tim Cook is already maneuvering Apple out of harm’s way, attempting to shield the company from the worst effects of Trump’s tariffs. As reported last week, Cook secured a temporary exemption for iPhones, Macs, Apple Watches, and iPads from most of the 145% tariffs after discussions with Commerce Secretary Howard Lutnick and other senior White House officials. But this exemption could be short-lived. Trump has said that electronics companies will eventually be subject to new tariffs as his administration reviews chip and electronics supply chains.
Apple has been ramping up its manufacturing in India over time and collaborating with partners, such as Tata Electronics and Foxconn. The company’s relationship with the Indian government is likely to help it smooth the way for favorable trading terms — especially as India is working on a trade deal with the U.S. Still, while Apple is building in a new location, it depends on Chinese suppliers for a large portion of the iPhone’s parts.
The company has pledged a $500 billion U.S. investment, but has yet to reveal plans to manufacture its iconic iPhone on American soil. Next week is Apple’s quarterly earnings report, and investors will be looking for any indications of how these tariffs and supply chain shifts may affect the company’s performance going forward.
FAQs
Why is Apple moving iPhone production to India?
Apple is shifting production to India to reduce dependence on China and avoid rising tariffs amid U.S.-China trade tensions.
When will Apple complete the move to India?
Apple plans to have all U.S.-bound iPhones assembled in India by the end of 2026.
