Apple will double its iPhone assembly in India for the US market by late 2026. This plan shifts most production away from China, where eighty percent of US iPhones are now made. This change comes as new US tariffs on Chinese imports drive up costs. Apple has already shipped two billion dollars of phones from India in March, showing a ramp-up in output. Talks with Foxconn and Tata aim to speed up this move as India seeks to be a top smartphone hub. Indian export duties on components are lower than China’s, making production there more attractive.
Why Apple Is Changing Course
Apple faces higher tariffs on goods from China under the current US policy. Apple sells about sixty million iPhones in the US each year, and 80% come from China. Increasing assembly in India will ease some trade tensions and cost pressures.
Plans and Partners
Apple is in discussions with Foxconn and Tata to boost assembly in India. India removed import taxes on some phone parts earlier this year to attract makers like Apple. Prime Minister Modi has pushed India as a global production centre for smartphones.
Costs and Challenges
Manufacturing iPhones in India costs five to ten percent more than in China under normal conditions. Moving supply lines takes years because core components still come from China. Chinese authorities have delayed export applications for Apple suppliers shifting gear to India.
Higher Cost of Assembly
India’s higher import duties and infrastructure gaps make production pricier. Traffic and power issues can slow factory shifts and add expense. Yet long-term tariff benefits and government support may offset these costs over time.
Impact on Supply Chain
More iPhones from India will diversify Apple’s supply chain and reduce China’s dependence. It will still take years to match China’s scale, but early steps show progress. Shifting only the US assembly to India means Apple keeps Chinese lines for other markets.
A New Chapter in iPhone Production
This bold move marks a key shift in how Apple manages risk and cost in a tough trade climate. As 2026 approaches, both Apple and its Indian partners will face tests in scaling up and streamlining production. Success will shape the future of global tech manufacturing and show how firms adapt when rules change.
