Apple Shifts Focus to Indian iPhone Production for U.S. Market

Fri 25th Apr, 2025

In a significant strategic shift, Apple is reportedly planning to increase its production of iPhones in India for the U.S. market, moving away from its longstanding reliance on China. This decision follows the imposition of high tariffs on Chinese goods by former U.S. President Donald Trump, which has made manufacturing in China less economically viable.

According to reports from various media outlets, including the Financial Times, Apple aims to produce all of the over 60 million iPhones sold annually in the United States from Indian facilities by the end of 2026. However, this ambitious goal necessitates a doubling of the current production capacity in India, based on insights from industry insiders.

Bloomberg also corroborated the shift, indicating that Apple intends for a significant portion of its iPhone imports to the U.S. to come from India. Both sources emphasized the need for enhanced production capabilities to meet the projected demand.

Trump's administration recently escalated tariffs on Chinese goods to a staggering 145 percent. Although electronics such as smartphones and laptops were initially exempt from most of these tariffs, the White House later clarified that this exemption is only temporary, further complicating the landscape for manufacturers.

Historically, Apple has relied heavily on a network of suppliers and contract manufacturers in China, built over several decades. However, in recent years, the company has been diversifying its supply chain, increasing its production capabilities in India and Vietnam. Currently, Apple can assemble its full range of products in India, although the majority of iPhones are still manufactured in China.

Trump and his commerce secretary had previously expressed intentions to bring iPhone production back to the United States, even suggesting the use of automation and robotics in U.S. factories. Industry analysts, however, caution that manufacturing iPhones domestically would considerably inflate prices. For instance, a device produced in a factory in West Virginia or New Jersey could potentially retail for around $3,500, according to Dan Ives, an analyst at Wedbush.

As Apple pivots towards India for its iPhone production, the global tech landscape is set to undergo notable changes, with implications for manufacturing costs, pricing, and supply chain dynamics.


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