Apple plans to move production of all iPhones for the American market to India as early as next year amid the trade war launched by President Donald Trump, Financial Times reports, citing sources.
Apple has previously sought to diversify its supply chains, but now intends to accelerate this process. According to the company’s plans, by the end of 2026, all 60 million iPhones sold annually in the US will be assembled in India.
In recent years, Apple has sought to increase smartphone production in India, including through contracts with Foxconn and Tata Electronics, the company’s largest suppliers in the country. However, in order to meet US market demand, Apple will need to double its capacity in India. According to International Data Corporation, the US accounted for about 28% of all global iPhone sales in 2024.
Apple has production facilities in three countries: China, India and Vietnam. However, most of the factories that assemble iPhones are located in China. India accounts for 20% of production. In 2024, Apple managed to increase iPhone production in India by almost 60%.
The US began imposing tariffs on Chinese goods in February, and by mid-April, US tariffs had reached 145%. Beijing responded by raising tariffs on US products to 125% and imposing restrictions on the export of certain minerals. The White House then warned China of 245% tariffs.
The trade war initiated by Trump has reduced Apple’s market value by $700 billion. Over three trading sessions, the iPhone maker’s shares fell 23%, Apple’s worst performance in four trading sessions since 2000. However, the real impact of Trump’s tariffs will only be understood after Apple reports its quarterly earnings.
