Apple plans to shift most iPhone production to India by 2026, reducing tariff risks amid geopolitical tensions.

In Short

Apple plans to import most US iPhones from India by 2026 to minimise tariff risks and geopolitical tensions with China, doubling production to over 80 million units.

This shift follows disruptions from Covid and aims to fully source US-bound iPhones from India by next year, leveraging recent tariff exemptions.

Apple Inc. plans to import the majority of iPhones sold in the US from India by 2026 in an effort to reduce tariff risks and geopolitical tensions associated with China.

The company aims to double its annual iPhone production in India to over 80 million units, up from just over 40 million in the fiscal year ending March 2025. Apple sells more than 60 million iPhones annually in the US.

This move highlights Apple’s ongoing shift away from China, which began after Covid lockdowns disrupted production. Tariffs imposed during former President Trump’s administration and rising tensions between the US and China have further driven this strategy.

Supply chain

Earlier reports indicated that Apple intends to source all US-bound iPhones from India by the end of next year. Therefore, the focus on India’s supply chain is expected to increase significantly.

Apple assembled around $22 billion worth of iPhones in India recently, experiencing a nearly 60% production increase year-on-year. Currently, 20% of iPhones are made in India, while China remains the largest production hub.

Most iPhones in India are assembled at Foxconn’s factory, and Tata Group also plays a critical role in manufacturing. Both companies are expanding their operations in southern India.

Additionally, recent tariff exemptions for electronics may benefit Apple significantly, as iPhones made in India currently face no duties for US sales.