Apple is moving swiftly to shift a major portion of its iPhone production for the United States from China to India, according to a report by Reuters. The tech giant aims to manufacture most of the iPhones sold in the U.S. in India by the end of 2026, a strategic move driven by concerns over rising tariffs and geopolitical tensions with China.
Currently, around 80% of the more than 60 million iPhones sold annually in the U.S. are made in China. However, Apple is urgently negotiating with its key manufacturing partners, Foxconn and Tata Electronics, to accelerate the transition of production to India. A source familiar with the confidential discussions stated that the company is expediting these plans to safeguard its supply chain and avoid potential cost hikes linked to escalating U.S.-China trade friction.
This move marks a significant shift in Apple’s manufacturing strategy. India has been emerging as a crucial hub for the company’s global operations in recent years. With government incentives for electronics manufacturing and a large, young workforce, India offers an attractive alternative to China’s well-established but increasingly challenging environment.
Apple has already been ramping up its presence in India. The company started assembling lower-end iPhone models there a few years ago and has been expanding its local production capabilities with support from partners like Foxconn. Tata Group’s growing role, including its acquisition of an iPhone assembly plant from Wistron, highlights the increasing involvement of Indian companies in Apple’s supply chain.
Analysts view the decision as part of Apple’s broader strategy to diversify its manufacturing footprint and reduce its heavy reliance on China. This pivot could also bolster Apple’s brand in India, a rapidly growing smartphone market where the company has been seeking to expand its consumer base.
If successful, the plan would mark one of the most significant shifts in global electronics manufacturing in recent years, positioning India as a key player in the future of iPhone production.
