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Apple plans to make most US-bound iPhones in India by 2026, moving away from China to avoid high tariffs while doubling production in the South Asian nation.
The tech giant aims to assemble over 80 million iPhones annually in India, up from the current 40 million units, according to the Financial Times. This shift would cover the more than 60 million iPhones Apple sells yearly in the US market.
The move comes as President Donald Trump’s administration maintains steep tariffs on Chinese goods. While smartphones were recently exempt from the heaviest Chinese tariffs, Apple still pays a 20% tax on all its imports from China.
Manufacturing costs in India run 5-8% higher than in China, according to a Reuters report citing an unnamed source. This difference can reach 10% in some cases.
However, experts say American-made iPhones would be dramatically more expensive. “If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state,” Wedbush Securities analyst Dan Ives told The Guardian, emphasizing how US production would triple prices for consumers.
Apple has already started ramping up its production in India. The company assembled $22 billion worth of iPhones in India during the 12-month period ending March 2025, marking a 60% increase from the previous year.
Not everyone thinks the move will work well. “Moving to India doesn’t solve all the problems,” MoffettNathanson analyst Craig Moffett told CNBC.
Moffett explains that Apple’s entire supply chain remains deeply rooted in China. Even if final assembly happens in India, most iPhone components would still come from Chinese factories.
India’s Prime Minister Modi has worked hard to attract smartphone makers. His government recently reduced import taxes on phone components to attract companies like Apple.
The supply chain relocation faces significant challenges. Chinese officials have reportedly blocked Apple suppliers from moving to India by delaying equipment shipments and denying export permits.
Apple’s main manufacturing partners in India include Foxconn Technology Group and the Tata Group. Tata purchased Wistron’s local business and now runs Pegatron’s operations in India.
The news of Apple’s manufacturing shift precedes the company’s quarterly earnings report, scheduled for release this Thursday.
