Apple Accelerates Shift From China to India

Apple Inc. is seeking to import most of the iPhones it sells in the US from India by the end of next year, accelerating a shift beyond China to mitigate risks related to tariffs and geopolitical tensions.

The goal means Apple would roughly double its annual iPhone output in India to more than 80 million units, people familiar with the matter said, asking not to be identified discussing internal plans. Apple assembled just over 40 million iPhones in India in the fiscal year through March 2025. It sells more than 60 million iPhones a year in the US.

The plans are the latest sign of Apple and its suppliers accelerating a pivot away from China, a process that began when harsh Covid lockdowns hurt production at its largest plant. Tariffs introduced by US President Donald Trump as well as Beijing-Washington tensions are prompting Apple to amplify that effort.

Apple representatives in India didn’t immediately respond to a request for comment. The Financial Times reported earlier Apple’s goal was to source all its US-sold iPhones from India by the end of 2026. Bloomberg News previously reported Apple’s plan to increasingly prioritize iPhones from the India supply chain for its US customers.

The Cupertino, California-based company assembled $22 billion worth of iPhones in India in the 12 months ended March, increasing production by nearly 60% over the previous year, Bloomberg reported this month. Apple now makes 20%, or one in five, of iPhones in the South Asian country, while China remains its biggest production base by far.

The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Tata Group’s electronics manufacturing arm, which bought Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, is also a key supplier. Tata and Foxconn are also building new plants and adding productioncapacity in southern India, Bloomberg News has reported previously.

Of the total India production, Apple exported 1.5 trillion rupees ($17.5 billion) in iPhones from the region in the fiscal year through March 2025, the nation’s technology minister said on April 8.

Shipments of iPhones from India to the US accelerated after Trump announced his plans for the so-called “reciprocal” tariffs in February. Apple’s average India production and exports surged all through the fiscal year to March.

The Trump administration earlier this month exempted electronics goods including smartphones and computers from its reciprocal tariffs. That’s good news for companies such as Apple, though the reprieve doesn’t appear to extend to Trump’s separate 20% duty on China, applied to pressure Beijing to crack down on fentanyl.

This also means iPhones made in India won’t attract any duties as of now. Barring the exceptions made April 11, Trump’s cumulative levies on China remain at 145%, and will likely force companies such as Apple to intensify their supply chain shift.

Apple now assembles its entire iPhone range in India, including the more expensive titanium Pro models. Its manufacturing success in the world’s most populous nation is also helped by state subsidies tied to Prime Minister Narendra Modi’s ambition to turn the country into a manufacturing hub.

Bloomberg's Anurag Rana reports.

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