Apple is accelerating its manufacturing shift away from China, with plans to assemble all U.S.-bound iPhones in India by the end of 2026, according to a new Financial Times report.
The ambitious timeline would require Apple to double its current iPhone production capacity in India. It marks a major acceleration of Apple's supply chain diversification strategy, which has been gradually expanding in recent years.
Currently, the majority of iPhones are manufactured in China through partners like Foxconn. The U.S. market accounts for approximately 28 percent of Apple's global iPhone shipments, which totaled 232.1 million units in 2024, according to International Data Corporation.
The shift comes amid renewed trade tensions between the US and China. President Trump recently implemented substantial tariffs on Chinese imports, causing Apple's market value to drop by approximately $700 billion. In response, Apple reportedly rushed existing Indian-manufactured iPhones to the U.S. to avoid higher tariffs imposed on Chinese goods.
The timing isn't coincidental. CEO Tim Cook has reportedly been working diligently behind the scenes to protect Apple from the full impact of Trump's tariffs. As reported last week, Cook secured a temporary exemption for iPhones, Macs, Apple Watches, and iPads from the bulk of Trump's 145 percent tariffs on Chinese imports after phone calls with Commerce Secretary Howard Lutnick and other senior White House officials.
The exemption might be short-lived, however. Trump later indicated that "no one would be getting off the hook" and that electronics companies would be "moving to a different tariff bucket" as his administration reviews semiconductors and the electronics supply chain.
Apple has been gradually building manufacturing capacity in India with partners Tata Electronics and Foxconn. The company's relationship with the Indian government may prove helpful, as India is currently working toward a bilateral trade agreement with the U.S., which could provide more favorable trade conditions.
Despite the assembly pivot, Apple still relies heavily on Chinese suppliers for hundreds of iPhone components. The company has pledged a $500 billion investment in the United States but has not announced plans to bring iPhone manufacturing to American soil.
Apple is scheduled to report quarterly earnings next week, where investors will be watching closely for any comments on how these tariffs and supply chain shifts might impact the company's future performance.
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