Apple aims to source all US iPhones from India in pivot away from China
Apple is preparing to move the assembly of all iPhones sold in the US to India as early as next year, according to people familiar with the matter, as former President Donald Trump’s trade policies continue to push the company to reduce its reliance on China.
This move is part of Apple’s broader plan to diversify its manufacturing base, but it appears to be progressing more rapidly and extensively than many investors realize. The goal is to assemble all of the over 60 million iPhones sold in the US each year in India by the end of 2026.
To meet that target, Apple would have to double its current iPhone production in India. The company has spent nearly twenty years investing in China to build one of the world’s most efficient manufacturing operations, which has helped it grow into a $3tn tech leader.
China, where the majority of Apple’s iPhones are assembled through partners like Foxconn, has been hit hard by Trump’s tariffs. While Trump has shown interest in negotiating with Beijing, the initial measures had already caused significant disruption.
In response to those tariffs—which erased $700bn from Apple’s market value at the time—the company quickly redirected iPhones made in India to the US to avoid the steeper Chinese import duties.
Over recent years, Apple has been gradually expanding its Indian operations through contract manufacturers such as Tata Electronics and Foxconn, though China remains its main production base.
Final iPhone assembly—the step that combines hundreds of parts into the finished device—is still largely dependent on components sourced from Chinese suppliers.
Trump originally introduced “reciprocal” tariffs exceeding 100 per cent on Chinese imports but later granted a short-term exemption for smartphones. However, iPhones remain subject to a separate 20 per cent tariff applied to all Chinese imports.
India faces its own “reciprocal” tariff of 26 per cent, though this is currently suspended as New Delhi and Washington work toward a bilateral trade deal. During a visit to India this week, US vice-president JD Vance said discussions were making “very good progress.”
In 2024, the US represented roughly 28 per cent of Apple’s global iPhone shipments, which totaled 232.1 million units, according to International Data Corporation figures.
To meet US demand solely from India, Apple will need to significantly expand its manufacturing capabilities in the country.
Last year, in a bid to boost Indian production, Foxconn and Tata began importing pre-assembled modules from China to streamline the assembly process.
“This shift is a strategic step for Apple to preserve its growth trajectory,” said Daniel Newman, CEO of research firm Futurum Group. “We’re witnessing how quickly a company with Apple’s scale can act when faced with geopolitical challenges.”
Apple is set to release its quarterly earnings next week, as investors look for clues on how the company is navigating the tariff landscape. Apple doesn’t provide detailed forecasts and has so far avoided making public statements about the trade conflict.
CEO Tim Cook has maintained frequent communication with Trump and his team since attending the former president’s inauguration in January.
Apple declined to comment on the matter.