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Apple to assemble all US-bound iPhones in India by next year

Northeast NewsbyNortheast News
April 25, 2025
in Business
Apple to assemble all US-bound iPhones in India by next year
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Apple plans to relocate the assembly of all iPhones destined for the United States to India as early as next year, as escalating US-China trade tensions prompt the tech giant to fast-track its supply chain diversification.

The move aims to completely shift the production of over 60 million iPhones annually sold in the US to Indian factories by the end of 2026.

According to reports, Apple wants to double iPhone production in India to 80 million units to meet the demand of 60 million iPhones to be sold in the US by 2026.

Soon after President Donald Trump‘s tariff announcement, Apple lost around $700 billion in market value.

The company currently relies heavily on Chinese assembly via partners like Foxconn, but rising tariffs imposed by President Donald Trump’s administration, reaching over 100 per cent on some Chinese imports, have made production in China increasingly expensive.

Although smartphones received a temporary exemption from the highest tariff bands, a 20 per cent duty still applies to Chinese-made devices entering the US.

Apple had manufactured the iPhone 15 models in India last year, and the tech giant extended this to the iPhone 16 Pro series last year.

Earlier this month, India’s IT minister Ashwini Vaishnaw had also revealed that Apple exported 1.5 trillion rupees (about $17.4 billion) of iPhones made in India in the fiscal year ending March 2025.

Notably, Apple has been trying to shift its dependence on China at least since the COVID-19 pandemic and subsequent shutdowns in 2020.

In this effort, the tech giant had been slowly shifting its focus to India with its three iPhone assembly plants: two run by the Tata group and one by Taiwanese contract manufacturer Foxconn.

Even before the introduction of reciprocal tariffs, Apple had started encouraging its suppliers from China, Japan, Taiwan and other countries to set up manufacturing facilities in India.

Recent data from market intelligence firm IDC indicates more than three million iPhones were shipped from India in the first three months of the year 2025.

Foxconn alone exported $1.31 billion worth of Apple devices in March, bringing its total shipments to the US to $5.3 billion this year. These included various iPhone models such as the 13, 14, 16, and 16e.

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Moreover, Apple plans to double its current Indian output and expand retail operations by opening four new stores in Bengaluru, Pune, Delhi-NCR, and Mumbai.

Tags: AppleiPhones
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