All iPhones Sold In US May Soon Be Made In India As Apple Moves To Cut China Dependence

Apple is planning to relocate assembly of all iPhones sold in the US to India as soon as next year, Financial Times reported citing people familiar with the matter.

This comes amid Trump’s escalating trade war with China, which has reportedly forced Apple to shift its production.

The move is part of Apple’s supply chain diversification but marks an accelerated shift, targeting India as the sole source for over 60 million iPhones sold annually in the US by the end of 2026.

Meeting the goal will require doubling India’s current iPhone output — a significant pivot after two decades of investment in China that helped Apple become a $3 trillion firm.

China, home to most of Apple’s iPhone manufacturing through partners like Foxconn, has been targeted by Trump’s steepest tariffs, though negotiations with Beijing remain on the table.

After Trump’s tariffs triggered a $700 billion market cap drop, Apple expedited shipments of India-made iPhones to the US to avoid the then-higher tariffs imposed on China.

While Apple continues to assemble most iPhones in China, it has been scaling Indian operations with partners Tata Electronics and Foxconn in recent years.

Despite shifting assembly, Apple remains reliant on China for hundreds of components integral to final iPhone production.

Though smartphones were temporarily spared, they are still subject to a separate 20 per cent rate that applies to all imports from China.

Trump administration also imposed a so-called 26 per cent reciprocal tariff on India, though this is pauses while New Delhi pushes for a bilateral trade agreement with the US.

US Vice President J D Vance, who was on a visit to India this week, confirmed “very good progress” on the deal.

The US represented 28 per cent of Apple’s global iPhone shipments—roughly 232.1 million units in 2024—according to IDC data.

To meet US demand solely from India, Apple need to significantly scale up its production capacity in the country.

To support India-based assembly, Apple’s partners like Foxconn and Tata began importing pre-assembled component sets from China last year.

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