Apple plans to relocate the assembly of most iPhones sold in the United States to India by the end of 2026, in a major strategic pivot aimed at reducing its dependency on China amid ongoing trade tensions.
The move is expected to double Apple’s production capacity in India and marks a significant escalation in the company’s efforts to diversify its supply chain.
Currently, about 80 percent of the 60 million iPhones sold annually in the US are assembled in China.
Apple’s transition to India comes as former President Donald Trump, who is running for re-election, renews pressure on American companies to shift manufacturing away from Beijing.
According to Reuters, Apple is in active talks with key Indian manufacturing partners, including Foxconn and Tata Group.
The company shipped $2 billion worth of iPhones from India to the US in March alone, accounting for a record 600 tonnes of cargo.
Indian Prime Minister Narendra Modi has been actively promoting India as a global manufacturing hub. Recent policy changes, such as the removal of import taxes on certain smartphone components, have encouraged firms like Apple to ramp up operations.
Despite this progress, manufacturing in India remains 5 to 8 percent more expensive than in China.
Analysts warn the shift will take years and could cost Apple between $30 billion and $40 billion. Infrastructure challenges, including traffic and logistical inefficiencies, remain hurdles.
Chinese authorities have reportedly delayed or blocked shipments of equipment to Apple suppliers trying to relocate to India, raising further concerns about Beijing's willingness to let go of its manufacturing dominance.
Apple assembled about $22 billion worth of iPhones in India in the fiscal year ending March 2025, a 60 percent rise year-on-year. However, India still accounts for just 20 percent of global iPhone production.
The announcement comes ahead of Apple’s earnings report, due Thursday, and amid ongoing trade discussions between the US and India.
Source: Al Jazeera
BDST: 1313 HRS, APR 26, 2025
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