Apple Inc. is accelerating its shift away from China, with plans to source the majority of iPhones sold in the U.S. from India by the end of next year, according to people familiar with the matter.
The move marks a significant pivot in Apple’s global supply chain strategy, aimed at mitigating the risks posed by tariffs and rising geopolitical tensions between Washington and Beijing.
Achieving this goal would require Apple to roughly double its current iPhone output in India. The U.S. is Apple’s largest market, with over 60 million iPhones sold annually. While Apple has not commented on the plan, the Financial Times first reported that the company is working toward sourcing all iPhones for the U.S. market from India by the end of 2026.
Apple has steadily increased its production in India, especially after disruptions caused by China’s strict Covid-19 lockdowns. The company assembled $22 billion worth of iPhones in India in the 12 months ending March 2025 — a nearly 60% increase from the previous year, according to Bloomberg. Today, 20% of all iPhones are manufactured in India, although China remains Apple’s primary production hub.
Key players in Apple’s India production ecosystem include Foxconn Technology Group, which operates a major facility in the south of the country, and Tata Group, which recently took over Wistron’s local operations and oversees Pegatron’s assembly work. India’s technology minister said Apple exported ₹1.5 trillion ($17.5 billion) worth of iPhones from India during the fiscal year ending March 2025.
The pace of exports from India to the U.S. accelerated after former President Donald Trump announced new “reciprocal” tariffs in February. Although a recent exemption has removed levies on electronics like smartphones and laptops, Apple and other tech giants remain exposed to broader China-focused tariffs. Trump’s other trade measures, including a 20% duty on Chinese imports, are still in effect.
The tariff landscape has further pushed Apple to shift more of its supply chain to India, where it now assembles its full iPhone lineup — including the premium titanium-bodied Pro models. This production boom is also supported by Indian government subsidies, part of Prime Minister Narendra Modi’s strategy to position India as a global manufacturing powerhouse.
With the combination of state support, rising output, and favorable tariff treatment, India is fast becoming a critical manufacturing hub for Apple — and a central piece of its strategy to insulate itself from U.S.-China tensions.
