Apple Plans Major Shift of iPhone Production to India by 2026

World

As Apple navigates challenges posed by U.S. President Donald Trump’s ongoing tariff war with China, the tech giant has outlined plans to shift the majority of iPhone assembly for U.S. sales to India by the end of 2026. The move would double its current output from India, significantly reducing reliance on Chinese manufacturing.

Currently, Apple produces 80 percent of the 60 million iPhones sold in the U.S. in China. Transitioning assembly to India is a critical strategy for the company to mitigate the increasing costs brought on by rising tariffs.

The Financial Times first reported Apple's new production plans on Friday.

According to Reuters, citing unnamed sources, Apple is already in discussions with its Indian manufacturing partners, including Foxconn and the Tata Group, to implement the plan. The shift builds on Apple's earlier efforts to expand Indian production to counter tariffs introduced during Trump’s first term.

In March alone, Apple shipped $2 billion worth of iPhones from India to the U.S., accounting for roughly 600 tonnes of cargo — a record shipment volume for both Tata and Foxconn, Reuters reported.

Indian Prime Minister Narendra Modi has been actively promoting India as a global hub for smartphone manufacturing. In support of this goal, India earlier this year removed import taxes on some components needed for mobile phone production, providing a major boost for companies like Apple.

“If you’re charging import tax for intermediary goods, then you cannot actually be competitive versus somebody who does not. Their objective is to be as competitive as they can be to become the leading manufacturing hub,” said Babak Hafezi, CEO of international consulting firm Hafezi Capital, speaking to Al Jazeera.

Apple assembled approximately $22 billion worth of iPhones in India during the 12-month period ending March 2025, marking a 60 percent year-over-year increase, according to Bloomberg. Nevertheless, India currently accounts for only 20 percent of the world’s total iPhone production.