Apple is accelerating its plans to shift iPhone production from China to India to avoid tariffs imposed by the US government. According to reports, Apple aims to manufacture over 60 million iPhones in India by the end of 2026, doubling its production capacity in the country.
The tech giant’s decision is driven by President Donald Trump’s tariff policies and escalating tensions between the US and China. Currently, around 80% of iPhones sold in the US are assembled in China, while 20% are produced in India. Apple’s CEO, Tim Cook, is looking to dodge tariffs on Chinese imports, which could severely impact the company’s operations.
Apple lost $300 billion in market value as investors digested the impact of Trump’s moves on its China-heavy manufacturing footprint. To mitigate this, the company has been airlifting iPhones from India to the US. In fact, Apple reportedly chartered flights to move 600 tons of iPhones from India to the US to get ahead of tariffs and build up inventory.
The company is working closely with contract manufacturers Foxconn and Tata Group to facilitate its India plans. These manufacturers have three factories in India and are planning to build two more. While expanding production in India, Apple still relies heavily on components from China, making the final assembly process complex.
As Apple diversifies its supply chain, analysts view this transition as critical to sustaining the company’s growth. With US-India trade relations showing positive momentum, Apple is optimistic about its decision. The US had imposed a 145% tariff on Chinese goods, while India’s tariff rate stood at 26%. However, the US suspended the tariff on Indian goods for 90 days as part of trade negotiations.