Apple to shift entire US iPhone assembly to India by 2026 amid trade war

Apple plans to relocate the assembly of all iPhones destined for the United States to India as early as next year, as escalating US-China trade tensions prompt the tech giant to fast-track its supply chain diversification, the Financial Times reported, citing sources familiar with the matter. 

The move aims to completely shift the production of over 60 million iPhones annually sold in the US to Indian factories by the end of 2026.
 
This pivot marks Apple’s most significant manufacturing shift in decades and builds on its recent investments in India.
 
US tariff makes Chinese manufacturing too expensive

The company currently relies heavily on Chinese assembly via partners like Foxconn, but rising tariffs imposed by President Donald Trump’s administration, reaching over 100 per cent on some Chinese imports, have made production in China increasingly expensive.

Although smartphones received a temporary exemption from the highest tariff bands, a 20 per cent duty still applies to Chinese-made devices entering the US.
 
India likely to secure first trade deal with US

India, in contrast, is subject to a paused reciprocal tariff of 26 per cent. Additionally, India is negotiating a bilateral trade agreement with Washington. US Vice President JD Vance recently visited India and described progress on this front as “very good”. India is expected to become the first country to secure a trade deal with the US and avoid Trump’s reciprocal tariffs.

Apple scales up production in India

Apple has scaled up its Indian manufacturing footprint through partnerships with Tata Electronics and Foxconn. The latter have been importing component sets from China and assembling iPhones locally.

Recent data from market intelligence firm IDC indicates more than three million iPhones were shipped from India in the first three months of the year 2025, even as the broader smartphone market in India contracted.

Foxconn alone exported $1.31 billion worth of Apple devices in March, bringing its total shipments to the US to $5.3 billion this year. These included various iPhone models such as the 13, 14, 16, and 16e. 

Moreover, Apple plans to double its current Indian output and expand retail operations by opening four new stores in Bengaluru, Pune, Delhi-NCR, and Mumbai. The company, which already employs over 3,000 people in India, has also posted hundreds of new job listings for roles in manufacturing and retail.
 
Tech companies eye manufacturing shift to India

Apple is not the only tech company eyeing India; media reports have indicated that Samsung is considering moving smartphone production from Vietnam to India following a steep 46 per cent tariff on Vietnamese imports. Google’s parent company Alphabet Inc is also reportedly in talks with manufacturing partners such as Dixon Technologies and Foxconn to relocate part of its Pixel smartphone production from Vietnam to India.

Source: Business Standard
--Agencies