Apple’s India iPhone Plan for US Market
In a significant reshaping of its global supply chain, technology giant Apple is reportedly planning to shift the assembly of all iPhones destined for the United States market to India by the end of 2026. This strategic move, as indicated by sources familiar with the matter, aims to reduce Apple’s reliance on China amid escalating trade tensions and tariffs imposed by the former Trump administration. Â Currently, a substantial majority, estimated at around 80%, of the iPhones sold in the U.S. are manufactured in China through key partners like Foxconn. The proposed shift would necessitate a considerable increase in Apple’s production capacity within India, potentially doubling its current output in the South Asian nation. This would translate to over 60 million iPhones being assembled annually in India for the American market alone. Apple has already been gradually increasing its manufacturing footprint in India, collaborating with local partners such as Tata Electronics and expanding the operations of existing suppliers like Foxconn. Recent data reveals a significant uptick in iPhone shipments from India to the U.S., with March 2025 witnessing a record $2 billion worth of exports. To facilitate this growing trade, efforts have been made to streamline logistics, including the establishment of a “green corridor” at Chennai airport to expedite customs clearance. The impetus behind this significant relocation is largely attributed to the ongoing trade friction between the United States and China. While mobile phones have, at times, been exempted from the highest tariff bands, a baseline 20% duty on Chinese imports remains a considerable factor. In contrast, India currently faces a reciprocal tariff of 26% on its exports to the U.S., although this is reportedly under negotiation as part of a potential bilateral trade agreement. Recent high-level meetings between U.S. and Indian officials suggest progress in these trade discussions, potentially positioning India as a favorable manufacturing hub. Â Industry experts suggest that while this move is a crucial step in diversifying Apple’s supply chain and mitigating tariff risks, a complete departure from China in the short term remains unlikely. China’s well-established manufacturing ecosystem and robust supplier network for iPhone components mean that India will initially focus on assembly, with components still largely sourced from China. Furthermore, concerns exist regarding India’s infrastructure capacity to handle such a rapid surge in production. Nevertheless, this reported plan underscores India’s growing importance as a global manufacturing destination, particularly in the electronics sector. The Indian government’s push to establish the country as a manufacturing hub, including recent tax incentives for mobile component production, appears to be gaining traction, attracting not only Apple but also other major tech players who are exploring similar supply chain diversification strategies. This potential shift by Apple could have significant long-term implications for the global electronics manufacturing landscape and the geopolitical dynamics of international trade.
