According to reports, Apple is developing a strategy to shift manufacturing of all iPhones sold in the United States from China to India in order to avoid future tariff issues.
According to sources cited by the Financial Times on Friday, the tech giant plans to source iPhones for its crucial U.S. market from the South Asian nation by the end of 2026. The company is scheduled to release its results next week.
In order to achieve this, Apple would need to stop investing heavily in China, where it depends on firms like Foxconn to assemble its well-known phones, and treble its output in India. According to research from Bank of America, Apple produces about 10% of its iPhones in India.
It was not immediately possible to get in touch with an Apple representative for comment.
Under the Trump administration’s tariff plans, China will be subject to exceptionally harsh tariffs that might reach 145%. In recent months, financial markets have experienced tremendous volatility as expectations for possible discussions fluctuate.
With 90% of iPhones made and assembled in China, Wedbush analyst Dan Ives stated earlier this month that “no U.S. tech company is more negatively impacted by these tariffs than Apple.” Given the years it would take to develop plants, experts like Ives have cautioned that Apple couldn’t simply shift manufacturing to the U.S., thus India would be a more practical choice for certain production.
Amid worries about the effects of tariff conflicts and AI spending, investors have penalized tech businesses in particular, causing Apple’s shares to drop 16% in 2025.
U.S. Commerce Secretary Howard Lutnick warned that additional tariffs are imminent after the Trump administration granted some tariff exemptions for smartphones and other consumer electronics products.
As buyers attempt to avoid tariffs, some analysts predict that sales of Apple’s iPhone and other products would soar in March and April. However, they are concerned about future declines in sales. For the remainder of the year and into 2026, UBS analysts have cautioned about a weak demand environment.
After meeting with Prime Minister Narendra Modi to discuss economic, trade, and geopolitical ties, U.S. Vice President JD Vance declared that “very good progress” had been made during his recent trip to India. The United States, India’s largest trading partner, imposed a 26% levy on the country under the now-paused tariff proposals.
