Apple is planning to shift the meeting of all iPhones bought in america to India by subsequent 12 months, a Monetary Occasions report stated on Friday- a daring transfer fueled by President Donald Trump’s renewed tariff threats on Chinese language imports.
The plan is a part of a broader technique to diversify Apple’s provide chain away from China, which nonetheless dominates a lot of the tech big’s manufacturing infrastructure. If profitable, this shift would see over 60 million iPhones produced yearly in India by 2026 – doubling present output, the FT report stated.
Why it issues
The US is Apple’s most vital market. In 2024, it accounted for roughly 28% of the corporate’s world iPhone shipments, in line with IDC. Shifting the manufacturing of US-bound iPhones out of China not solely helps Apple dodge steep tariffs but additionally reduces long-term geopolitical threat tied to US-China relations.
Extra instantly, the pivot is a response to Trump’s “reciprocal tariff” agenda. His administration slapped China with tariffs that when hit as excessive as 145% and nonetheless embrace a 20% responsibility on smartphones. Although some electronics like telephones have been just lately exempted, that reduction seems non permanent. Trump has additionally floated new levies geared toward semiconductor-heavy merchandise, doubtlessly impacting Apple’s whole system line.
Zoom in
Within the fiscal 12 months ending March 2025, Apple assembled $22 billion value of iPhones in India – a 60% year-over-year enhance, in line with a Bloomberg report. About 20% of the world’s iPhones now come from India, a determine poised to develop quickly.
Most of this manufacturing takes place at Foxconn’s sprawling campus in Tamil Nadu, together with Tata Electronics, which acquired Wistron’s operations and now additionally oversees Pegatron’s manufacturing. This marks a turning level for Apple’s manufacturing technique, which had remained largely centered in China for almost twenty years.
India’s authorities, below Prime Minister Narendra Modi, helps pave the way in which. Apple is tapping into production-linked incentives and should profit from new $2.7 billion subsidy plans geared toward boosting electronics manufacturing and semiconductors.
The massive image
Apple’s urgency stems from a commerce shock in early 2024, when Trump’s tariffs knocked $700 billion off the corporate’s market worth. In response, Apple started exporting Indian-assembled iPhones to the US – a transfer designed to beat the tariff clock, the FT report stated.
Nonetheless, challenges stay. Whereas meeting is the ultimate stage within the iPhone manufacturing course of, Apple remains to be closely reliant on Chinese language suppliers for parts, the FT report added. Specialists say shifting your complete provide chain might take years. Bloomberg Intelligence estimates that shifting simply 10% of Apple’s manufacturing out of China might take as much as eight years.
The shift additionally counters Trump’s personal name for corporations to “carry jobs house.” Analysts say the US lacks the labor pressure and infrastructure to assist large-scale iPhone meeting, making India a extra viable different.
What they’re saying
“We consider that is going to be an vital transfer for Apple to have the ability to preserve its progress and momentum,” Daniel Newman, CEO of the Futurum Group, informed the Monetary Occasions. “We’re seeing in actual time how an organization with these sources is shifting at relative mild pace to handle the tariff threat.”
Apple declined to remark for the FT report.
Between the traces
The iPhone maker’s pivot additionally aligns with broader provide chain reshuffling throughout the tech trade. The pandemic uncovered the fragility of China-dependent manufacturing, particularly throughout Covid-era lockdowns at Apple’s largest Chinese language plant. Now, geopolitical threat is compounding that concern.
To get forward of potential provide disruptions, Apple shipped 57.9 million iPhones in Q1 2025 — a ten% leap from the identical interval final 12 months — because it raced to construct stock within the US earlier than tariffs might take impact, IDC reported.
Customers additionally seen: Apple Shops noticed a spike in demand this spring, as buyers rushed to purchase iPhones earlier than potential value hikes kicked in.
What’s subsequent
Apple is about to report earnings subsequent week. Analysts anticipate the corporate to subject powerful questions concerning the monetary impression of tariffs, India’s function within the firm’s long-term technique, and whether or not manufacturing targets for 2025 are life like.
Whereas Apple’s transition gained’t totally sever its ties with China, the message is evident: The iPhone’s future – a minimum of within the US – will more and more be ‘Made in India’.
(With inputs from companies)