Apple Plans to Shift iPhone Assembly for U.S. Market to India by 2026
NRI PULSE STAFF REPORT
appCupertino, CA, April 25, 2025: In a strategic shake-up of its global manufacturing operations, Apple is reportedly planning to shift the entire assembly of iPhones sold in the United States from China to India by the end of 2026. The move, first reported by the Financial Times, marks a significant step in Apple’s ongoing efforts to diversify its supply chain and reduce reliance on China amid mounting geopolitical tensions and economic uncertainties.
Currently, over 90 percent of Apple’s iPhones are assembled in China. However, U.S.-China trade tensions, compounded by the threat of renewed tariffs under a possible second Trump administration, have prompted Apple to fast-track its expansion in India. The company has already begun increasing production through key suppliers Foxconn and Tata, who collectively shipped nearly $2 billion worth of iPhones to the U.S. in March 2025 alone.
The plan to localize U.S.-bound iPhone assembly entirely in India would require Apple to double its current production capacity in the country within the next year and a half. Apple’s ramp-up in India is part of a broader strategy to shield its business from the financial impact of tariffs, which have already cost the company an estimated $700 billion in market value and created uncertainty around future import duties.
While India also faces tariffs on exports to the U.S., the two countries are reportedly in talks to strike a new trade agreement that could ease the path forward for Apple and other American tech firms looking to expand manufacturing outside of China.
Apple’s pivot to India is also being closely watched by analysts and industry insiders who say the company, more than many of its peers, is vulnerable to tariff exposure due to its heavy dependence on Chinese manufacturing. As Apple works to reorient its supply chain, it is also navigating shifting consumer demand. Sales spiked in early 2025 as customers rushed to buy iPhones ahead of possible price hikes, but analysts warn of potential slowdowns later in the year.
The shift could have a profound economic impact on India, solidifying its position as a critical player in global electronics manufacturing and bringing high-value jobs and infrastructure development to the region.
About Author
