Faced with rising trade tensions, Apple shifts iPhone production to India instead of depending on Chinese factories.
Apple is preparing to assemble all iPhones sold inside the US in India by next year, aiming to produce over 60 million units annually in the country by 2026.
The move comes in response to mounting geopolitical tensions and renewed tariff threats under former President Donald Trump’s trade agenda, which once imposed duties as high as 145% on Chinese imports.
The decision marks a major shift in Apple’s supply chain strategy, which has long depended on China. By doubling production in India, Apple hopes to reduce its exposure to trade-related risks instead of relying on short-term tariff exemptions.
Foxconn’s plant in Tamil Nadu and Tata Electronics are leading the effort, with support from India’s government through manufacturing incentives and subsidies.
While Apple remains dependent on Chinese suppliers for many components, shifting final assembly to India reflects growing urgency. Trump-era tariffs triggered a $700 billion market loss for the company in early 2024, prompting Apple to act swiftly instead of waiting for further shocks.
Around 20% of all iPhones are now made in India, a figure expected to rise sharply in the coming years.
Although challenges remain, such as the complexity of relocating the broader supply chain, analysts believe the shift is crucial for Apple’s long-term growth.
With US production capacity lacking the scale and workforce needed, India presents a more viable solution to ensure continued momentum and price stability in Apple’s most important market.
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