Apple Plans To Shift Entire US iPhone Assembly To India By 2026: Report

Apple is reportedly planning to shift the entire assembly of iPhones sold in the US to India by as early as next year.

This would mark a major move in Apple’s global manufacturing push as it looks to reduce its dependence on China, Financial Times reported.

This urgency stems from the escalating trade wars between the US and China. Earlier this month, the US imposed a 145% tariff on China. While China still accounts for nearly 80% of global iPhone production, Apple has been gradually moving parts of its supply chain out of the country.

Now, the tech giant is aiming to go beyond just diversification, seeking to manufacture the entire volume of iPhones sold in the US, roughly 60 Mn units annually, entirely in India.

The report further noted that this target would entail doubling the iPhone output from India. However, the tech giant has been ramping up its Indian capacity in partnership with contract manufacturers Tata Electronics, Pegatron and Foxconn. 

Apple started manufacturing a portion of the iPhone 15 in India last year, and it already assembles 30 Mn to 40 Mn iPhones in India every year, almost 25% of its total global iPhone production. Moreover, it is also looking to expand its retail footprint across India, with plans afoot to open four additional stores in key cities.

Meanwhile, data from the International Data Corporation, underlines that the US accounted for 28% of Apple’s 232 Mn global smartphone shipments in 2024. 

Apple’s Roadblocks In India Manufacturing 

In terms of manufacturing, what works in India’s favour is the global tariff equations. India currently attracts a reciprocal tariff of 10%, which might be increased to 27% post the 90-day pause on the reciprocal tariff. This tax is far less than the other manufacturing substitutes for the US, like China with a 145% tax and Vietnam with a 46% tax. 

However, in a bid to stop the moving of manufacturing to India, China has tightened the noose around exports of manufacturing equipment, such as high-precision lasers, air leak test stations and pick-and-place machines to India.

A recent report also underlined that the Chinese authorities refused to allow one of Apple’s Chinese equipment suppliers to export machinery to India, which Apple needed for the trial production of the upcoming iPhone 17.

Apple will also have to hire more workforce in India per shift as it will no longer enjoy the 12-hour shift done by employees in the Chinese factories. 

Also, there are quality issues. Reportedly, Apple’s attempts to establish sub-assembly lines (the process involves the addition of metal brackets and screw holes to key components) in India in 2023 met with failure on quality and cost measures. To this result, the company moved the sub-assembly lines back to China, sources reportedly said.