Apple Shifts U.S. iPhone Production to India, Marking End of China Era

Apple will move all iPhone production for the US market from China to India by the end of 2026, according to multiple industry and government sources.

This marks a dramatic shift in Apple’s supply chain, driven by rising tariffs and growing trade tension between the US and China. The US market accounts for about 28% of Apple’s global iPhone shipments.

Apple currently sells over 60 million iPhones a year in the US. Until now, China has dominated Apple’s manufacturing, but new US tariffs—up to 145% on Chinese goods—have made Chinese assembly too expensive.

Even with a temporary 90-day exemption for smartphones, a 20% duty still applies to Chinese-made iPhones entering the US. In contrast, India faces a paused 26% tariff and is negotiating a trade deal with Washington, making it a more attractive production base.

Apple started building iPhones in India in 2017. In the year ending March 2025, Apple assembled $22 billion worth of iPhones in India, a 60% jump from the previous year. About 20% of iPhones now come from India, up from just 14% in 2024.

To meet US demand, Apple will need to double Indian output to over 80 million iPhones annually by 2026. Most of this production happens at Foxconn’s large plant in Tamil Nadu, with Tata Electronics and Pegatron also expanding their roles.

Apple’s Strategic Shift to India

India’s government is supporting this shift with production-linked incentives and new subsidy plans, aiming to make the country a global manufacturing hub.

Apple’s Indian exports hit $17.5 billion in the last fiscal year, with Foxconn’s shipments alone jumping over 40%. The Indian government expects iPhone production to reach 25% of global output by 2028.

Apple’s move is not without challenges. India’s factories have faced quality control issues, with some iPhones assembled there falling short of Apple’s standards.

Infrastructure and logistics in India still lag behind China, and Apple remains dependent on Chinese suppliers for many components. Delays at Chinese ports have also disrupted shipments of specialized equipment needed for Indian factories.

Despite these hurdles, Apple is committed to the transition. The company is scaling up hiring and investing in new plants. Tata Electronics is consolidating its position, acquiring a majority stake in Pegatron’s Indian plant and expanding its own facilities.

Foxconn plans to more than double its Indian output in 2025. This shift is a direct response to the cost pressures and risks of US-China trade conflict.

By moving US-bound iPhone production to India, Apple aims to protect its margins, avoid unpredictable tariffs, and reduce its exposure to geopolitical shocks.

If successful, Apple will be among the first major tech brands to serve the US market at scale from India, signaling a major realignment in global electronics manufacturing. All figures and claims in this article are based on verified industry data and official government statements.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error