Apple Plans to Shift All U.S.-Bound iPhone Production to India by 2026

Apple Inc., the prominent global technology giant, appears to be taking significant steps towards a major strategic shift. In light of escalating trade tensions between the United States and China, Apple is reportedly planning to relocate the entire production of iPhones destined for the U.S. market to India. The company is aiming to achieve this complete transition by the year 2026, according to sources.

Due to the imposition of steep tariffs by both nations on each other’s imports, the trade conflict between the United States and China has intensified. As a result, importing goods manufactured in China into the United States has become increasingly expensive for companies like Apple. Analysts estimate that iPhones imported from China may attract tariffs of up to 145% in the United States. If such tariffs are implemented, the retail price of Chinese-manufactured iPhones in the U.S. market could rise significantly. To offset this burden and navigate the prevailing trade uncertainty, Apple is exploring alternative strategies. One such option under serious consideration is the relocation of manufacturing operations to India.

At present, nearly 80% of Apple’s global iPhone production outside the U.S. takes place in China, while India accounts for approximately 14%. However, since the election of Donald Trump as President of the United States, the atmosphere of trade friction with China has persisted. Consequently, Apple and many other multinational corporations have been actively searching for robust alternatives to China for manufacturing hubs.

In this context, the Government of India, in 2020, introduced the Production-Linked Incentive (PLI) scheme to promote smartphone manufacturing in the country. This policy attracted Apple, prompting the company to ramp up its iPhone assembly operations in India.

In the last fiscal year, Apple manufactured iPhones worth nearly $22 billion in India. Notably, phones valued at $18 billion were exported to various international markets. This significant growth in output highlights the rapid expansion of Apple’s operations in the country.

If Apple finalizes its plan to produce iPhones for the U.S. market entirely in India, it would deliver a major boost to India’s manufacturing sector and to the ‘Make in India’ initiative. Should this plan come to fruition, future iPhones sold in the American market may bear the label “Made in India.”