Trump Tariff Effect! Apple to Move All US iPhone Production to India From China

Apple is reportedly planning to shift the production of all iPhones sold in the United States to India from China as early as next year. The move is in response to escalating trade tensions with China, driven by the tariffs imposed by President Donald Trump.

The company aims to produce over 60 million iPhones annually in India for the US market by the end of 2026 — a move that would effectively double its current output in the country, according to a report by the Financial Times (FT).

The decision represents a major pivot for Apple, which has long relied on China, particularly manufacturing partners like Foxconn, to assemble the majority of its iPhones. Over the past two decades, the tech giant has heavily invested in building a robust production ecosystem there.

However, US tariffs targeting Chinese goods have forced Apple to reconsider its dependency on China. Although President Trump has recently indicated a willingness to negotiate with Beijing, earlier tariff hikes, as high as 245%, significantly impacted Apple, at one point erasing nearly $700 billion from its market valuation.

The latest move suggests that Apple is now ready to deepen its commitment to India as a key manufacturing hub for its most important product line.

Apple's India Supply Chain                      

According to a report by The Information, Apple currently sources between 30 million and 40 million iPhones annually from India. These smartphones are assembled by Taiwan’s Foxconn at its factory in Tamil Nadu, and Tata Electronics at its two factories, one in Karnataka and another in Tamil Nadu. There are two other factories under construction for iPhone assembly.

According to Bloomberg, Apple suppliers manufactured iPhones worth $14 billion in India during FY24. India now accounts for 15% of iPhone production, still behind China which has over 84% of Apple’s total manufacturing capacity.  

Apple also has 14 components suppliers in India as of 2023, including Corning, which opened a display manufacturing facility in Tamil Nadu.

Foxconn’s US-bound exports from India surged to $770 million in January 2025, up from $110–$331 million monthly in late 2024, according to reports.

Why Shift US-Bound iPhone Production?

Apple's revenue for the last year amounted to $391.04 billion, with the United States accounting for $142.20 billion, followed by Europe ($101.33 billion) and Greater China ($66.95 billion).

With President Trump slapping China with triple-digit tariffs, the earlier fear was that shipping China-made iPhones to the US would more than double the cost to the consumer.

While the president has exempted chips, smartphones, and computers from these tariffs, analysts still believe the risk remains.