Apple Inc. has unveiled plans to relocate the assembly of all iPhones for the U.S. market from China to India by 2026, in a bold move to mitigate risks linked to the ongoing U.S.-China trade war. The company’s decision comes as the trade conflict intensifies, with steep tariffs being imposed on Chinese imports.
Currently, around 80% of the 60 million iPhones sold annually in the U.S. are assembled in China. This strategic shift to India is part of Apple’s broader plan to diversify its supply chain and reduce reliance on Chinese manufacturing. In line with this, Apple is set to double its production capacity in India, partnering with key players such as Tata Electronics and Foxconn to expand operations in the country.
The move is also driven by the uncertainty surrounding the 145% tariff on Chinese goods, which was recently implemented by the U.S. government, although smartphones are temporarily exempt. Fearing that the exemption could be revoked at any time, Apple is proactively shifting production to safeguard against future disruptions.
India, which has been assembling iPhones since 2017, has already begun producing flagship models as of 2023. In 2024, the country produced an estimated 40-43 million iPhones, with around 30 million units exported. To meet its new targets, Apple is heavily investing in expanding manufacturing infrastructure in India, even as it faces challenges like higher production costs and the need for skilled labor.
This pivotal move highlights Apple’s efforts to navigate the evolving geopolitical landscape and secure its competitive position in the global market.
