Apple to shift all US-bound iPhone production to India by 2025 amid tariff war with China
Updated: Apr 25th, 2025
Apple is preparing to assemble all iPhones bound for the US market in India by next year, moving away from its long-standing dependence on China, as per a report.
The report by Financial Times report states that the move comes on the heels of fresh tariff threats under Donald Trump’s ‘reciprocal tariff’ push, prompting Apple to fast-track its diversification strategy.
As per the report, Apple plans to produce over 60 million iPhones annually in India by 2026, effectively doubling its current output in the country. India is expected to become the central hub for US iPhone assembly, a decision driven by both geopolitical tensions and supply chain risk mitigation.
The shift matters as the US remains Apple’s most important market – accounting for nearly 28% of its global iPhone shipments in 2024. By moving assembly out of China, Apple hopes to dodge hefty import duties and insulate itself from further disruption tied to the brittle US-China relations.
While the idea of diversifying its manufacturing base isn’t new, the recent imposition of tariffs reportedly rattled the tech giant, wiping out around $700 billion from its market value. In response, Apple has started exporting India-made iPhones to the US to get ahead of any price increases or stock issues, noted the report.
Much of this new production is anchored at Foxconn’s massive Tamil Nadu facility, alongside Tata Electronics, which now also oversees Pegatron’s former operations. In FY25, Apple reportedly assembled $22 billion worth of iPhones in India – a 60% jump from the previous year. About 20% of global iPhones now come from India, and that number is set to grow fast.
However, the transition isn’t without challenges. iPhone assembly is just the final step – most of the components still come from Chinese suppliers, as per reports. Experts note that fully relocating the entire supply chain will take years. Bloomberg Intelligence estimates that moving even 10% of Apple’s production out of China could take up to eight years.
Apple is set to report earnings next week, and investors are expected to seek clarity on how tariffs are shaping its financial strategy and whether its India production goals are on track. So far, no official statements have been released by the tech giant.
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