Islamabad, Apr 27, 2025: Apple is reportedly preparing to shift the assembly of all iPhones destined for the U.S. market to India, as part of its strategy to minimize reliance on Chinese manufacturing amidst the ongoing trade tensions caused by former President Donald Trump’s policies.
The tech giant, valued at $3 trillion (£2.3 trillion), aims to execute this transition by next year.
Apple has been caught in the crossfire of Trump’s aggressive trade tariffs, with the company once facing significant stock market losses due to the risk of high import taxes on its products manufactured in China.
Nevertheless, the situation was mitigated when the White House decided to exempt smartphones from the heaviest tariffs on Chinese goods, though Apple still faces a 20% tax on all Chinese imports as part of the U.S.’s stance on China’s involvement in the production of Fentanyl.
The manufacturing process for iPhones is highly complex, incorporating over 1,000 parts sourced globally, though most of the assembly occurs in China. While Apple is tight-lipped about its production processes, analysts estimate that approximately 90% of its iPhones are put together in China.
As reported by the Financial Times, Apple intends to have India produce more than 60 million iPhones annually for the U.S. market by 2026, a move that would require the company to more than double its current assembly capacity in India.
Read More: Custom Fees Increase for iPhones
Already, Apple has been increasing production in India and sending phones assembled there to the U.S.
In March alone, Apple’s primary Indian suppliers, Foxconn and Tata, exported nearly $2 billion worth of smartphones to their largest market, the U.S., to counteract the impact of potential tariffs.
To further bolster its inventory, Apple arranged cargo flights to transport approximately 600 tons of iPhones – the equivalent of up to 1.5 million units – to the U.S.
The company operates three factories in India, and last month, the largest Foxconn plant in Chennai began working on Sundays to boost production.
In addition to iPhones, more than 50% of Apple’s Mac products and 80% of its iPads are also assembled in China, according to Evercore, a U.S. investment firm. Apple Watches are primarily manufactured in Vietnam.
Despite these shifts, analysts do not foresee Apple relocating iPhone production to the U.S., even though the White House has suggested the possibility of bringing back tech manufacturing to America.
Karoline Leavitt, a spokesperson for the U.S. president, pointed to Apple’s recent $500 billion investment as an indication that a U.S.-made iPhone might eventually become a reality.
However, experts remain skeptical about this scenario. Wedbush Securities, a U.S.-based financial firm, has warned that the cost of producing iPhones in the U.S. could more than triple if the assembly were moved back home.
