Apple aims to manufacture all US-sold iPhones in India by the end of 2026, according to reports by the Financial Times and Bloomberg. This ambitious move would roughly double India’s annual iPhone output to more than 80 million units, as the tech giant responds to tariff pressures and seeks to diversify production beyond China.
SurveyThis move comes amid US President Donald Trump’s trade policies targeting Chinese imports. After Trump’s tariff announcements earlier this month temporarily wiped approximately $700 billion from Apple’s market value, the company began urgently exporting available Indian-manufactured iPhones to the US to avoid higher tariffs imposed on Chinese goods.
Also Read: Made in India iPhone: How India’s saving Apple from Trump’s China tariffs
Currently, Apple assembles just over 40 million iPhones annually in India, with production increasing by nearly 60% in the past year. The US market accounts for about 28% of Apple’s global iPhone shipments, representing more than 60 million devices annually.
While the Trump administration recently exempted smartphones from its “reciprocal” tariffs, a separate 20% duty on Chinese imports remains in effect.
Apple’s manufacturing expansion in India has been facilitated by partnerships with contract manufacturers Foxconn Technology Group and Tata Electronics. The bulk of India-made iPhones are assembled at Foxconn’s factory in southern India, while Tata Group’s electronics manufacturing arm, which acquired Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, serves as another key supplier.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw revealed earlier this month that Apple exported 1.5 trillion rupees ($17.5 billion) in iPhones from the region in the fiscal year through March 2025, reflecting the increasing importance of Indian manufacturing to Apple’s global supply chain.
Despite these ambitious plans, significant challenges remain. While assembly represents the final stage in iPhone production, Apple still heavily relies on Chinese suppliers for components. Bloomberg Intelligence estimates that shifting just 10% of Apple’s production out of China could take up to eight years.
The company is expected to address questions about its manufacturing strategy and the financial impact of tariffs when it reports quarterly earnings next week.
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