Apple has announced its intention to move all assembly plants for iPhones sold in the United States to India, with the goal of completing this shift as early as next year.
This move is part of Apple’s broader strategy to diversify its supply chain. The company aims to source all iPhones destined for the US market—more than 60 million units annually—from India by the end of 2026. This would effectively double iPhone production in India, marking a significant shift after nearly two decades in which Apple heavily invested in China to build a robust production system that propelled its growth into a $3 trillion tech giant.
These changes follow tariff announcements that had a substantial impact on Apple’s market value. To mitigate the effects of higher tariffs on China, Apple began exporting all available India-manufactured iPhones to the US. While the majority of Apple’s smartphones are currently assembled in China, the company has been gradually expanding its production capabilities in India through contract manufacturers Tata Electronics and Foxconn.
iPhone assembly, the final stage in the production process, involves integrating hundreds of components. Apple still relies heavily on Chinese suppliers for these components. iPhones imported into the US are subject to a tariff that applies to all imports from China, while India also faced a reciprocal tariff, though it is currently paused due to ongoing efforts by New Delhi to secure a bilateral trade agreement with the US.
The US represents a significant market for Apple, accounting for roughly 28% of the company’s 232.1 million global iPhone shipments in 2024, according to the International Data Corporation. To meet the demands of the US market, Apple will need to substantially increase its production capacity in India.
In 2024, Foxconn and Tata began importing pre-assembled component sets from China to help bridge the gap created by reduced production in China and meet the iPhone demand in the US market.
