Apple plans to shift the assembly of all iPhones sold in the US to India by the end of 2026 amid the threat of the Trump administration’s hefty tariffs on China, The Financial Times reports.
Shifting the assembly of the roughly 60 million iPhones sold in the US to India means Apple will need to effectively double its production in the South Asian country, according to the FT’s sources. Reuters later reported that Apple is already in conversations with manufacturers like the Indian conglomerate Tata Group and Taiwan’s Foxconn about making the move.
Though the current administration paused the tariffs on incoming smartphones and computers earlier this month, concerns still abound about the impact that tariffs on China will have on US iPhone buyers and Apple’s business.
Trump announced tariffs of up to 145% on imports from China earlier in April. As the vast majority of iPhones are manufactured in China, this has prompted fears of a $2,300 iPhone from analysts, while Apple’s stock price has slid roughly 18% since tariffs on China were first officially announced.
Apple has already been using India for at least some of its iPhone assembly for a long time. The company first started manufacturing smartphones in the country in 2017, with the iPhone SE, and is now manufacturing some iPhone 16 Pros in the country.
However, the transition to India from China might not be an easy one—at least in the short term. Dan Ives, an analyst at Wedbush Securities, told Al Jazeera that transitioning core iPhone production “could take years,” pegging the total cost to Apple at between $30 billion to $40 billion.
Ives highlighted many issues that could make the transition difficult, pointing out that India has “massive infrastructure problems in terms of traffic and mobility,” which may slow down production and cost Apple money.
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Apple has not officially commented on the reports at the time of writing.
The news comes as it appears that the Trump administration is attempting to make inroads with India’s top brass. Vice President JD Vance visited the country earlier this week, sitting down with Indian Prime Minister Narendra Modi. India currently faces a 26% tariff after the 90-day pause on smartphone tariffs lifts in early July, provided nothing changes in the interim.
We’ve already seen Apple employ many different strategies to avoid the fallout from Trump’s tariffs. The Times of India reported early this month that Apple has flown in numerous cargo planes filled with tons of Indian-made goods as a way to delay the impact of the tariffs, at least temporarily.
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About Will McCurdy
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