Tech giant Apple is planning to move the assembly of all iPhones sold in America from China to India, according to reports.
According to people familiar with the matter who spoke with the Financial Times, all American iPhones will be assembled in India by the end of next year.
The Financial Times reports that the major pivot is driven by the ongoing trade war between the US and China.
Apple is aiming to source the entirety of its U.S. iPhone supply from India as soon as next year.
The move comes after Apple, the largest company in the world by market capitalization, has spent nearly two decades building up a world-class manufacturing operation in China.
It also comes after Apple CEO Tim Cook reportedly signed a $275 billion deal with China in 2016 to prevent a crackdown by the communist government on its vast business in the country.
However, Apple now faces mounting pressure from President Donald Trump’s tariffs on Chinese imports.
The shift to India represents a significant acceleration of Apple’s strategy to diversify its supply chain.
The company had been planning to move some of its production away from China, but the tariffs have ramped up these plans.
Apple’s target is to have all of the iPhones sold in the U.S. assembled in India by 2026.
Currently, over 60 million iPhones are sold in America every year.
This would effectively double Apple’s current iPhone output in the country.
Apple has been steadily increasing its manufacturing capacity in India in recent years.
The company has been expanding partnerships with contract manufacturers like Tata Electronics and Foxconn.
However, the vast majority of iPhone assembly still takes place in China.
Assembly is the only final stage of iPhone production, however.
They still require hundreds of components sourced from suppliers, many of which are still based in China.
In the rush to avoid higher tariffs following Trump’s announcements, Apple briefly exported Indian-made iPhones to the U.S. in a massive airlift.
The U.S. market accounts for roughly 28 percent of Apple’s global iPhone shipments.
Based on data from IDC, Apple shipped a total of 232.1 million units globally in 2024.
To fulfill all U.S. orders from India, Apple will need to significantly ramp up its production capabilities in the country.
As part of the recent push, Foxconn and Tata have begun importing pre-assembled component sets from China to integrate into iPhones in their Indian facilities.
Analysts believe the move is critical for Apple to sustain its growth trajectory.
The iPhone maker is due to report quarterly earnings next week.
Investors are trying to gauge the impact of Trump’s tariff plans.
CEO Tim Cook has engaged regularly with Trump and his administration since attending his inauguration in January 2025.
READ MORE – Top Experts Link Apple AirPods to Surge in Disturbing Brain Disorder
