By Alex 
Apple is accelerating its plans to move a significant portion of iPhone production for the US market from China to India, according to multiple sources. This strategic shift is primarily driven by the ongoing trade tensions between the United States and China, which have led to increased tariffs on Chinese imports. Apple estimates that the current tariffs could add approximately $900 million to its costs.
Currently, about half of the iPhones sold in the US are assembled in India, and Apple aims to increase this proportion significantly. According to CEO Tim Cook, the company expects that a majority of iPhones sold in the US will soon be manufactured in India. By the end of 2026, Apple plans to assemble all US-bound iPhones in India.
This move is part of Apple’s broader strategy to diversify its supply chain and mitigate risks associated with trade policies. While China has been the primary manufacturing hub for Apple products for nearly two decades, the rising tariffs and geopolitical uncertainties have prompted the company to seek alternative production locations.
India has emerged as a key player in this shift, with the Indian government offering subsidies and incentives to boost its electronics manufacturing sector. Apple’s production expansion in India will not only help it avoid higher tariffs but also create thousands of jobs in the country.
However, this transition comes with challenges. Production costs in India are estimated to be 5% to 8% higher than in China, which could lead to modest price increases for US consumers. Additionally, scaling up production to meet US demand will require significant investment and expansion of local facilities.
Despite these challenges, Apple remains committed to this strategy, highlighting its adaptability and resilience in the face of global trade disruptions.