In a major shakeup of its global supply chain, Apple has announced plans to move the production of all iPhones destined for the U.S. market from China to India by the end of 2026. This move is driven by rising geopolitical tensions, increasing tariffs, and the company’s long-term goal of reducing dependence on Chinese manufacturing.

Currently, nearly 80% of the 60 million iPhones sold annually in the United States are assembled in China. However, with the Biden administration’s recent imposition of a 145% tariff on Chinese electronics, Apple is fast-tracking efforts to shift its production footprint.

To achieve this, Apple is working closely with its manufacturing partners, Foxconn and Tata Electronics, to ramp up production capabilities in India. The companies currently operate three factories and plan to build two additional ones. Once completed, these facilities are expected to produce over 80 million iPhones annually—enough to meet U.S. demand.

While manufacturing in India is roughly 10% more expensive than in China, Apple views the move as a necessary step to ensure supply chain stability and compliance with new trade regulations. The tech giant has already started exporting India-made iPhones to the U.S., including a recent shipment of over 600 tons of devices flown in to preempt the tariffs.

Apple’s investment in India goes beyond assembly. The company is also expanding the local production of iPhone components such as metal casings and is setting up advanced laboratories and hiring thousands of engineers to support development and testing.

This shift marks a significant boost for India’s ambitions to become a global electronics manufacturing hub. The Indian government has responded by proposing customs duty relief to encourage component production and domestic value addition.

Industry analysts say the move could have far-reaching implications for global tech supply chains, as other companies may follow Apple’s lead in diversifying away from China.

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