Apple plans to shift the production of the majority of its iPhones sold in the United States to factories in India by the end of 2026. This move is part of a strategy to mitigate the impact of potential increased tariffs in China, which has been its primary manufacturing hub, as reported by a source familiar with the matter.
According to the insider, Apple is currently engaged in urgent discussions with its contract manufacturers, Foxconn and Tata, to expedite the execution of this plan. The individual chose to remain anonymous due to the confidential nature of the discussions.
Requests for comments from Apple, Tata, and Foxconn went unanswered.
Apple is known to sell over 60 million iPhones in the US each year, with approximately 80 percent of these devices currently produced in China. The company is now focused on relocating a significant portion of that manufacturing to India, the source indicated.
In efforts to counteract US tariffs initiated during Donald Trump’s presidency, Apple has increased its production in India, exporting around 600 tons of iPhones valued at $2 billion to the United States in March. This was reported as a record for both Tata and Foxconn, with Foxconn alone shipping smartphones worth $1.3 billion, according to a report from last week.
In April, the US government imposed a 26 percent tariff on imports from India, which is considerably lower than the over 100 percent tariff imposed on Chinese products at the time. Recently, the US has paused the majority of its tariffs for three months, with the exception of those applied to China.
The Trump administration has also expressed a willingness to ease tensions in the trade conflict between the two largest economies, which has raised concerns about a potential recession.
The Financial Times initially broke the news regarding Apple’s manufacturing shift on Friday.
As Apple expands its production capabilities outside of China, India is set to play a significant role. Foxconn and Tata, its two primary suppliers in the region, currently operate three factories, with plans for two additional factories underway.