Apple to Shift U.S. iPhone Assembly to India

Apple is reportedly planning to move the assembly of all iPhones destined for the U.S. market to India as early as next year. This strategic shift away from China is intended to circumvent substantial tariffs, according to the Financial Times, which cited individuals familiar with the plan.

The tech giant has not yet provided a response to a request for comment.

Mounting commercial tensions are compelling technology firms to diversify their supply networks. Apple is strategically positioning India to assume a crucial role in its production roadmap, despite the fact that its Indian suppliers currently account for only a fraction of total iPhone production.

Experts previously cautioned that consumer products, including iPhones, were particularly susceptible to the impact of tariffs and anticipated potential price hikes for U.S. consumers due to Apple’s significant reliance on imports from China.

Increased prices could diminish Apple’s profit margins and create opportunities for Android-based smartphone manufacturers to gain a competitive advantage.

Earlier this month, authorities in Washington granted tariff exemptions for a range of electronic goods primarily sourced from China, providing some relief to technology companies such as Apple.

Apple’s annual iPhone sales exceed 220 million units globally. Research indicates that a fifth of the iPhones imported into the United States originate from India, with the remainder coming from China.

Foxconn and Tata, Apple’s primary partners in India, manage three manufacturing facilities, with two additional plants presently under construction.

Customs records indicate that Foxconn and Tata exported iPhones valued at close to $2 billion from India to the U.S. earlier this year, marking a new high.

According to sources, Foxconn’s Chennai factory is now operating on Sundays. The facility manufactured 20 million iPhones in the past year, encompassing both the iPhone 15 and iPhone 16 models.