Apple increasingly shifts iPhone production to India
Trade conflict with China and high tariffs force company to realign strategy

Apple is reportedly planning to increasingly manufacture its iPhones for the US market in India instead of China. According to media reports, India is set to play a significantly larger role in production and delivery. The goal is to manufacture all iPhones sold annually in the United States—more than 60 million units—in India by the end of 2026. To achieve this, production in India would need to double, according to the Financial Times, citing informed sources. Bloomberg also reported that Apple aims to import a large portion of its iPhones from India into the United States.
The background to this shift is the tariff policy of US President Donald Trump. The US government recently raised tariffs on goods from China to a total of 145 percent, although electronics such as smartphones and notebooks are temporarily exempt. However, the White House made it clear that these exemptions may not be permanent. China is currently working to ease the trade conflict and announced that some US imports would be excluded from the increased tariff rate of 125 percent.
For Apple, the new tariff policy presents a significant challenge. Most iPhones have so far been produced in China, where the company built a network of contractors and suppliers over decades. To adapt to the changing conditions, Apple has already expanded its production capacities in India and Vietnam in recent years. In India, all models of the iPhone range can now be assembled. Companies like Foxconn and Tata Electronics are involved in the manufacturing process. However, final assembly is only one part of the complex production process, as Apple remains heavily reliant on Chinese suppliers.
Relocating iPhone production could be an important step for Apple to maintain its growth and momentum. The United States and India are currently negotiating a trade agreement. The US has suspended tariffs of 26 percent on imports from India while talks for a permanent solution are ongoing. US Vice President JD Vance spoke of good progress and a detailed roadmap. If Apple were instead to manufacture the iPhones in the United States, production costs would rise sharply according to experts. Analysts estimate that an iPhone made in America would cost around $3,500.
