Apple Inc. (NASDAQ: AAPL) is set to transition the assembly of all iPhones sold in the United States to India by the end of 2026, according to reports from the Financial Times. This strategic move aims to reduce the company’s reliance on Chinese manufacturing in response to increasing trade tensions and tariffs imposed by the U.S. government.
Currently, Apple manufactures the majority of its iPhones in China through partners like Foxconn. However, the company has been expanding its operations in India, collaborating with firms such as Tata Electronics and Foxconn to increase production capacity. To meet the new target, Apple will need to significantly boost its output in India, effectively doubling current production levels.
This shift is driven by the financial pressures of U.S. tariffs on Chinese imports, which have affected Apple’s market value and profitability. By moving assembly to India, Apple aims to mitigate these impacts and ensure a more stable supply chain. While India also faces tariffs, ongoing negotiations for a trade agreement with the U.S. may provide a more favorable environment for Apple’s manufacturing operations.
Analysts view this move as a significant step for Apple to sustain its growth amid geopolitical uncertainties. The U.S. currently accounts for approximately 28% of Apple’s global iPhone shipments, making this transition crucial for the company’s future.
