Apple Inc. is reportedly planning to shift the assembly of all iPhones sold in the United States to India as early as next year, signaling a major move away from its long-standing manufacturing base in China, according to a Financial Times report.
The decision is believed to be driven by escalating trade tensions between the U.S. and China. The report suggests Apple aims to produce over 60 million iPhones annually for the U.S. market from India by the end of 2026—a shift that would require doubling India’s current iPhone output in just over a year, a much faster transition compared to the nearly 20 years Apple spent building its manufacturing presence in China.
Historically, Apple has heavily depended on Chinese manufacturing partners like Foxconn to produce its devices. However, this dependency has made the company vulnerable to geopolitical risks and tariffs, especially during former U.S. President Donald Trump’s administration, which imposed steep trade duties on Chinese goods.
Earlier in April, Apple reportedly rushed iPhone shipments from India as renewed trade tensions flared up. Although Trump temporarily exempted electronics from tariffs, he signaled this could change, contributing to fears that Apple could lose as much as $700 billion in market value due to its exposure in China.
To reduce this risk, Apple has been expanding its manufacturing footprint in India with the help of partners like Tata Electronics and Foxconn. These efforts gained momentum after disruptions in Chinese factories caused by civil unrest and stricter government policies.
In related developments, the Financial Times also noted that Chinese factories have recently slowed production and sent workers home in response to the new wave of U.S. tariffs. While Washington has signaled a willingness to resume trade negotiations, Beijing has not shown the same openness.