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synopsis
Driven by potential US tariffs on Chinese goods, Apple plans to source all US-sold iPhones from India by 2026.
Apple has been slowly accelerating plans to shift iPhone production to India, but since US President Donald Trump announced his Inauguration Day tariffs, the company is rushing to manufacture all US-bound iPhones in India as early as next year. China is strongly opposed to Apple leaving its territory and is doing all in its power to thwart Apple's plans.
By the end of 2026, Apple intends to source all iPhones sold in the US from India, according to the Financial Times. According to the International Data Corporation, the US accounted for around 28% of Apple's 232.1 million iPhone shipments worldwide in 2024. To reach this goal, Apple would need to produce more than 60 million iPhones a year in India.
Apple's production to shift to India amid tariff war?
This would need double the nation's present iPhone production, where the business has been gradually increasing capacity with Foxconn and Tata Electronics, contract manufacturers. The drive coincides with the imposition of high tariffs—up to 125%—by US President Donald Trump on Chinese goods, which might jeopardize Apple's supply chain, which is mostly reliant on China. Even though Trump last week declared a 90-day moratorium on additional tariffs, with the exception of China, there is still a real risk of further trade restrictions.
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For this reason, Apple has been working to increase the size of its manufacturing presence in India. According to Reuters, since March, the business has operated six cargo flights that have transported over 600 tons of iPhones—almost 1.5 million devices—from India to the US.
Apple collaborated with Indian officials to create a "green corridor" at Chennai airport, which shortened the 30-hour customs processing period to only six hours in order to assist these shipments. In an effort to increase output, the business also briefly added Sundays to the schedule at Foxconn's biggest Indian facility.
China is delaying Apple's shipments?
Apple is determined to broaden its manufacturing base, but it seems that Chinese authorities are preventing this from happening. According to The Information, Chinese authorities have been unjustly delaying or preventing the supply of equipment used in the production of iPhones to India.
According to The Information, permission times for exporting iPhone-making equipment from China to India have grown from two weeks to up to four months. "In many cases, Chinese authorities are delaying or blocking shipments of iPhone equipment to India without explanation," the report said.
Currently, Apple assembles roughly 20% of iPhones in India, but The Information reports the company has "a long-term goal of moving about half of its iPhone production out of China." For a business that invested over 20 years in developing its manufacturing base in China, which fueled Apple's ascent to become a trillion-dollar behemoth, this change marks a significant turnaround.
