Apple looking to move iPhone mass production from China to India
- Marijan Hassan - Tech Journalist
- 1 day ago
- 2 min read
Apple is reportedly preparing to move the assembly of all iPhones for the US market from China to India. According to a Financial Times report, the tech giant aims to complete the transition as early as next year. The move would mark one of the most significant changes to Apple's supply chain in decades.
Why the shift?
Apple has been caught in the recent trade wars between the US and China, with President Trump threatening to impose heavy import taxes on iPhones made in China.. Although smartphones were ultimately excluded from the harshest tariffs, Apple still faces a 20% levy on Chinese goods tied to U.S. efforts to curb China's role in fentanyl production.
Currently, about 90% of iPhones are assembled in China, but Apple has been steadily ramping up production in India. Its main partners, Foxconn and Tata, shipped nearly $2 billion worth of iPhones from India to the US in March alone. The company also chartered cargo flights to ferry about 1.5 million devices to ensure US inventory levels remained strong.
New goal
By the end of 2026, Apple reportedly plans to supply over 60 million iPhones annually from India to the US. That’s more than double the current Indian output.
Apple already operates three plants in India and recently extended operations at its largest Foxconn facility in Chennai to include Sunday shifts. Despite the expansion abroad, analysts say Apple is unlikely to move iPhone production to the US anytime soon.
Karoline Leavitt, President Trump’s press secretary, pointed to Apple's recent $500 billion US investment announcement as a sign that American-made iPhones could become a reality, but industry experts remain skeptical.
"If Apple didn’t think the U.S. could do it, they probably wouldn’t have put up that big chunk of change," Leavitt argued.
Weighing in on the discussions, analysts at Wedbush Securities estimate that making iPhones in the US would triple their price, pushing the cost of an iPhone above $3,500. "If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas," said Wedbush analyst Dan Ives.
Fraser Johnson, a supply chain expert at Ivey Business School, also noted that the US lacks the flexible labor force needed to quickly train 200,000 - 300,000 workers to assemble iPhones. It’s "simply not practical," he said.
