Apple Mulls to Shift all US-Bound iPhone Assembly to India by 2026

According to the news reports, in response to escalating trade tensions between the United States and China, Apple has accelerated its efforts to diversify its supply chain. According to sources cited by the Financial Times, the company plans to move the assembly of iPhones destined for the United States to India starting as early as next year. By 2026, Apple aims to shift the production of over 60 million iPhones sold annually in the US to Indian factories. This represents one of the most significant manufacturing shifts for Apple in decades, following the company’s recent investments in India.

Impact of Rising Tariffs on Chinese Manufacturing

Apple has traditionally relied on Chinese manufacturers such as Foxconn to assemble its devices. However, increasing tariffs imposed by the Trump administration, which reached over 100% on some Chinese imports, have significantly raised production costs in China. While smartphones received temporary exemptions from the highest tariff brackets, a 20% duty still applies to Chinese-made devices entering the US. These tariffs have prompted Apple to seek alternative manufacturing locations, with India emerging as a viable option due to more favourable trade conditions.

India’s Role in Apple’s Manufacturing Expansion

Apple’s plans to shift production to India are supported by the country’s ongoing negotiations with the United States for a bilateral trade deal, which could secure India the first-ever trade agreement with the US and avoid reciprocal tariffs. Apple has already scaled up its production in India through partnerships with Tata Electronics and Foxconn, with over three million iPhones shipped from India in the first quarter of 2025. In addition to increasing manufacturing capacity, Apple plans to open four new retail stores in Bengaluru, Pune, Delhi-NCR, and Mumbai, further expanding its presence in the country.

Tech Giants Shifting Production to India

Apple is not the only tech company eyeing India as a manufacturing hub. Reports indicate that Samsung is considering moving its smartphone production from Vietnam to India in response to a steep 46% tariff on Vietnamese imports. Additionally, Alphabet Inc., Google’s parent company, is also reportedly in talks with manufacturers like Foxconn and Dixon Technologies to relocate some of its Pixel smartphone production from Vietnam to India. As India continues to improve its trade relations with the US, it is poised to become a major player in global tech manufacturing.

Read More: India iPhone Exports Soar to ₹1.5 Trillion in FY25, Surpassing PLI Target by 2x

Conclusion

Apple’s decision to shift its iPhone manufacturing to India is a response to rising tariffs on Chinese imports and the need to diversify its supply chain. This move will significantly increase India’s role in global tech production, with other major companies expected to follow suit.

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