Apple Accelerates iPhone Production Shift from China to India

Apple is ramping up efforts to shift the bulk of its iPhone production for the U.S. market from China to India by the end of 2026, according to a source familiar with the matter. The move comes as the tech giant looks to navigate rising trade tensions and potential tariff hikes on Chinese-made goods.

Urgent discussions are reportedly underway between Apple and its key manufacturing partners, Foxconn and Tata, as the company works to fast-track its supply chain diversification. Neither Apple nor Foxconn responded to requests for comment, while Tata declined to issue a statement.

Currently, about 80% of the over 60 million iPhones Apple sells annually in the United States are manufactured in China. While India has emerged as a potential alternative thanks to government initiatives promoting domestic manufacturing, higher import duties on smartphone components continue to pose a cost challenge.

Manufacturing costs for iPhones in India are approximately 5–8% higher than in China, and in some cases the gap can reach up to 10%, the source noted. Still, Apple is accelerating its investment in India as part of a broader strategy to mitigate geopolitical risks and tariff exposure.

In March, Apple significantly increased shipments from India, sending about 600 tons of iPhones — valued at roughly $2 billion — to the United States. This marked a record month for both Tata and Foxconn, with the latter alone accounting for $1.3 billion of those exports.

The push comes amid a complex trade environment. While the U.S. imposed a 26% tariff on imports from India last April — substantially lower than the more than 100% rate levied on Chinese goods at the time — most tariffs on Indian imports have since been paused, excluding China.

As Apple looks to lessen its reliance on China, India is quickly becoming a critical hub in its global manufacturing network. Foxconn and Tata currently operate three factories in India, with two additional plants under construction.

First reported by The Financial Times, Apple’s strategy reflects a growing trend among tech companies to diversify production lines amid geopolitical uncertainty, regulatory shifts, and rising labor costs in China.

With India’s growing manufacturing capacity and strong government incentives, the country is poised to play a pivotal role in Apple’s long-term production roadmap.