As Apple navigates U.S. President Donald Trump’s ongoing tariff war with China, the tech giant plans to shift the majority of iPhone assembly for the U.S. market to India by the end of 2026.
Currently, 80 percent of the 60 million iPhones sold in the U.S. are produced in China, and this move aims to reduce Apple’s exposure to rising tariffs.
The Financial Times first reported the shift, while Reuters confirmed that Apple is in talks with its Indian manufacturing partners, including Foxconn and Tata Group, to execute the transition. Apple has already expanded production in India, shipping $2 billion worth of iPhones to the U.S. in March 2025, a record for both Tata and Foxconn.
Indian Prime Minister Narendra Modi’s push to make India a global smartphone manufacturing hub, including the removal of certain import taxes, has created favorable conditions for Apple’s expansion. Over the past year, Apple has assembled about $22 billion worth of iPhones in India—a 60 percent increase from the previous year. Still, only 20 percent of global iPhone production currently takes place there.
Despite the progress, shifting production comes at a cost. Manufacturing in India is reportedly 5–8 percent more expensive than in China, and moving significant core production will take years, analysts warn. Chinese authorities have also created obstacles, delaying or blocking equipment shipments to India.
Apple’s shift could cost between $30 billion and $40 billion, according to Wedbush analyst Dan Ives, who noted the transition will be gradual due to India’s infrastructure challenges.
Meanwhile, U.S.-India trade talks are progressing, with U.S. Vice President JD Vance recently meeting with Modi. This development coincides with anticipation over Apple’s upcoming earnings report, set to be released on Thursday.
