According to reports from the Financial Times and Bloomberg, Apple has set its sights on manufacturing all iPhones sold in the United States in India by the end of 2026. This strategic initiative is projected to nearly double India’s annual output of iPhones, increasing it to over 80 million units as Apple seeks to mitigate tariff pressures and lessen its production dependency on China.

This decision is influenced by the trade policies introduced by former President Donald Trump, which have specifically targeted imports from China. Following Trump’s recent tariff announcements, which led to a staggering loss of around $700 billion in Apple’s market valuation, the technology company has been prompted to urgently increase the export of iPhones manufactured in India to the US in a bid to evade the higher tariffs that apply to Chinese imports.

Also Read: Made in India iPhone: How India’s saving Apple from Trump’s China tariffs

At present, Apple assembles slightly more than 40 million iPhones each year in India, marking a notable increase of nearly 60% in production within the last year alone. The US market is crucial for Apple, accounting for roughly 28% of its total iPhone shipments globally, which translates to more than 60 million devices shipped to the American market annually.

While the Trump administration has recently exempted smartphones from its reciprocal tariffs, a 20% duty on various Chinese imports continues to loom, maintaining pressure on companies relying on these supply chains.

Apple’s expansion strategy in India is supported by its collaborations with contract manufacturers such as Foxconn Technology Group and Tata Electronics. Most of the iPhones assembled in India are produced at Foxconn’s facility located in southern India, while Tata Group’s electronics division, having absorbed Wistron Corp.’s local operations and managed Pegatron Corp.’s activities in India, plays a crucial role as an additional supplier.

As noted by Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, Apple exported a remarkable 1.5 trillion rupees (approximately $17.5 billion) worth of iPhones from India during the fiscal year that concluded in March 2025. This highlights the growing significance of Indian manufacturing within Apple’s broader global supply chain.

Despite Apple’s ambitious manufacturing aspirations in India, substantial obstacles persist. Although assembly represents the final step in the long process of iPhone production, the company still heavily relies on Chinese suppliers for many of its crucial components. According to estimates from Bloomberg Intelligence, diverting even a mere 10% of Apple’s production away from China could take as long as eight years to fully implement.

Investors and stakeholders are keenly awaiting the results of Apple’s next quarterly earnings report, as the company is anticipated to address inquiries regarding its production strategy and the potential financial ramifications resulting from the imposed tariffs. The spotlight will be on how effectively Apple can leverage its evolving manufacturing footprint and navigate the complexities of international trade dynamics while sustaining its market position.

In conclusion, Apple’s strategy to pivot manufacturing to India signifies not only its desire to adjust to current geopolitical and economic climates, but also its commitment to expanding its operational base in one of the world’s largest emerging markets. This transformation holds potential not just for Apple’s global supply chain, but also for the Indian economy, increasingly becoming a hub for technology production and innovation.