Apple is shifting production of the majority of its iPhones for the US market to India
BENGALURU – April 26, 2025: According to a source who spoke to Reuters, Apple plans to produce the majority of its iPhones sold in the United States at factories in India by the end of 2026. The company is accelerating these efforts in response to the possibility of increased tariffs in China, its primary manufacturing base.
The U.S. tech giant is currently engaged in urgent discussions with contract manufacturers Foxconn and Tata to reach this objective, as revealed by a source who requested anonymity due to the confidential nature of the planning process.
Apple and Foxconn have not yet responded to requests for comment, while Tata has chosen not to provide any statement. In the U.S., Apple sells over 60 million iPhones each year, with approximately 80% of those currently produced in China.
In recent years, Prime Minister Narendra Modi has advocated for India as a center for smartphone manufacturing. However, the country’s higher tariffs on mobile phone component imports compared to many other nations make production in India less cost-effective for companies.
According to the source, manufacturing costs for iPhones in India are 5-8% higher than in China, with differences reaching up to 10% in certain cases. To circumvent U.S. President Donald Trump’s tariffs, Apple has already increased production in India, shipping around 600 tons of iPhones valued at $2 billion to the U.S. in March.
These shipments represented a record for both Tata and Foxconn, with the latter contributing smartphones worth $1.3 billion, according to a report by Reuters last week. In April, the U.S. administration imposed a 26% duty on imports from India, which is significantly lower than the over 100% duty faced by China at that time.
Since then, Washington has temporarily suspended most tariffs for a three-month period, excluding those for China. The Trump administration has also indicated a willingness to ease tensions in the trade war between the world’s two largest economies, which has heightened recession concerns.
The Financial Times first disclosed Apple’s plan on Friday. As Apple seeks to diversify its manufacturing beyond China, it has earmarked India for a vital role. Foxconn and Tata, its main suppliers in the region, operate three factories and are currently building two additional ones.
