Synopsis: Apple is considering moving its entire iPhone assembly for the US market to India by 2026. This strategic shift aims to reduce its reliance on China amidst trade tensions and boost production in India, where 20% of global iPhones are already being made.
In a major overhaul of its global manufacturing blueprint, Apple Inc. is reportedly planning to shift all iPhone assembly for the US market to India by 2026, according to a detailed report by the Financial Times dated April 25. The decision is part of Apple’s broader push to diversify its supply chain beyond China amid escalating trade tensions between Washington and Beijing.
India Rising in Apple’s Supply Chain
Apple has been steadily increasing its investments in India. According to Bloomberg, India now accounts for 20% of Apple’s global iPhone production, with $22 billion worth of devices assembled in the past year — a historic high. This marks a crucial step in Apple’s shift away from its traditional manufacturing base in China.
The move, however, is conditional. Apple will monitor the scalability of its Indian supply chain and the outcome of ongoing US-China tariff negotiations, sources told the Financial Times. Former US President Donald Trump and the current administration have both urged Apple to reduce dependency on China, giving further momentum to this shift.
Foxconn Leads the Expansion
Apple’s manufacturing partner Foxconn is set to play a vital role in this transition. Its new plant in Bengaluru is expected to become operational by the end of April, with a peak production capacity of 20 million units annually, according to CNBC-TV18. Foxconn, Pegatron, and Tata-owned Wistron are ramping up their capabilities across India.
De-Risking From China
Apple’s planned shift is not just about tariffs — it’s also about long-term risk management. The company is responding to:
- Geopolitical instability in China
- Rising labor and operational costs
- Global calls for tech supply chain decentralization
India’s appeal lies in its stable policy environment, PLI incentives, and young, skilled labor force. These factors are helping Apple reposition India as a strategic export base for global iPhone sales — especially to the United States.
Apple’s Market Footprint in India
Beyond production, Apple’s consumer presence in India is also growing, with nearly 8% market share in the premium smartphone segment. Apple retail stores in India and increased iPhone affordability through local manufacturing are expected to boost this figure in the coming years.
Disclaimer: This article is based on reports by Financial Times, Bloomberg, and CNBC-TV18. Apple has not made an official announcement yet. The final decision may be subject to economic, political, and logistical factors
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