Asia
Apple plans to move US iPhone assembly to India

According to people familiar with the matter, Apple plans to shift the assembly of all iPhones sold in the US to India starting next year, as President Donald Trump’s trade war forces the tech giant away from China.
This move, based on Apple’s strategy to diversify its supply chain, is progressing further and faster than investors appreciate, according to the Financial Times. The goal is for all more than 60 million iPhones sold annually in the US to be sourced from India by the end of 2026.
This target means doubling iPhone production in India, following nearly two decades where Apple spent heavily in China to build a worldwide production line that enabled it to become a $3 trillion tech giant.
China, where Apple produces most of its iPhones through third parties like Foxconn, has been subject to the US president’s most aggressive tariffs, although Washington has since signaled its willingness to negotiate with Beijing.
Following Trump’s tariff announcements that wiped $700 billion off Apple’s market value, the company rushed to export existing iPhones produced in India to the US to avoid higher tariffs imposed on China.
Apple has been steadily developing capacity in India with contract manufacturers Tata Electronics and Foxconn in recent years, but still assembles most of its smartphones in China.
iPhone assembly, the final step in the production process, brings together hundreds of components that Apple still largely relies on Chinese suppliers for.
Trump initially announced that reciprocal tariffs of over 100% would be applied to imports from China, but later proposed a temporary reprieve for smartphones. These devices are still subject to a separate rate of 20% applicable to all imports from China.
A so-called reciprocal tariff of 26% was applied to India, but this application was paused as New Delhi pushed for a bilateral trade agreement with the US. Visiting India this week, US Vice President JD Vance said the two countries were making “very good progress”.
According to International Data Corporation, the US accounts for approximately 28% of Apple’s 232.1 million global iPhone shipments in 2024.
Apple will need to further increase its capacity in India to meet all orders from the US.
Last year, as the iPhone maker sought to increase its production in India, Foxconn and Tata began importing pre-assembled component kits from China.
“We believe this will be a significant move for Apple to continue its growth and momentum,” said Daniel Newman, CEO of research firm Futurum Group. He added, “We are seeing in real time how a company with these resources moves at relatively light speed to address tariff risk.”
Apple is set to announce its quarterly earnings next week as investors try to understand the impact of Trump’s tariff plans. The company does not provide specific guidance on earnings and avoids discussing tariffs.
Chief Executive Tim Cook has been in regular contact with Trump and his administration since attending the president’s inauguration in January.