Apple to shift all US iPhone assembly to India by 2026 amid China trade tensions: Report

Apple Inc. plans to shift assembly of all iPhones sold in the United States to India as early as next year in its efforts to diversify beyond China amid a trade war with Washington, Financial Times reported, citing people familiar with the matter.

The US tech giant aims to manufacture the entirety of over 60 million iPhones sold annually in the US from India by the end of 2026, according to the report.

The move would require Apple to double its current iPhone output in India, where it already manufactures around 35 million units annually through contract manufacturers like Foxconn and Tata Electronics.

The company’s pivot gained urgency following US President Donald Trump’s tariff announcements that wiped off nearly $700 billion of Apple’s market valuation.

The company expedited shipments of India-made iPhones to the US earlier this year.

In March, Apple airlifted iPhones worth nearly $2 billion from India to the US, using chartered cargo flights to ferry around 600 tonnes of devices from Chennai to cities including Chicago, Los Angeles, and New York. Foxconn exported iPhones valued at $1.31 billion in March alone, while Tata’s shipments stood at $612 million, an increase of 63% from February.

The exported models included the iPhone 13, 14, 15, 16, and 16e, taking Foxconn’s cumulative iPhone exports to the US from India in 2025 to $5.3 billion.

While final assembly is being relocated to India, Apple remains heavily reliant on Chinese suppliers for components, many of which continue to be shipped to India for final assembly.

The US remains Apple’s largest market, accounting for 28% of its global iPhone shipments of 232.1 million units in 2024, according to International Data Corporation (IDC) estimates.

Although Trump announced tariffs of over 100% on Chinese imports, smartphones received temporary relief. However, they are still subject to a 20% tariff. On the other hand, Indian-made iPhones face a 26% reciprocal duty, which has been paused for 90 days as New Delhi and Washington negotiate a bilateral trade agreement.

During a recent visit to India, US Vice President JD Vance said the two countries were making “very good progress” on trade discussions.

Apple, which has relied on Chinese manufacturing since the iPhone’s debut in 2007, now appears poised to make India a central hub for its global supply chain.

“We believe this is going to be an important move for Apple to be able to maintain its growth and momentum,” FT quoted Daniel Newman, CEO of Futurum Group, as saying. “We are seeing in real time how a company with these resources is moving at relative light speed to address the tariff risk.”

Apple is scheduled to announce its quarterly earnings on May 1. The company has not offered specific guidance on the financial impact of the tariffs, and CEO Tim Cook is expected to face questions during the earnings call.