Apple is planning a historic transition—shifting production of all iPhones sold in the United States to India by next year, according to a report in the Financial Times on Friday. The action is in response to increased trade tensions fueled by President Donald Trump's renewed threats of tariffs against Chinese imports.

The move is part of a wider strategy to wean Apple off its reliance on China, which remains the corner post of the manufacturer's supply chain. Successful implementation of this strategic shift could see more than 60 million iPhones being made every year in India by 2026—twice the country's current production, according to the FT report.

Apple’s Most Loyal Market Meets Its New Manufacturing Hub

The United States is Apple's most profitable and strategic market. In 2024 alone, it received around 28% of all worldwide iPhone shipments, based on IDC figures. Relocating production away from China not only saves Apple from facing significant tariffs but also reduces its vulnerability to increasing US-China diplomatic tensions.

More recently, the pivot is a response to Trump's "reciprocal tariff" policy. His administration imposed tariffs on China that once reached as much as 145% and still carry a 20% tariff on smartphones. While some electronics such as phones were recently exempted, that reprieve seems temporary.

Additionally, Trump has floated new levies targeting semiconductor-heavy products—a move that could potentially affect Apple’s entire lineup of devices. The company’s urgency reflects its desire to stay ahead of unpredictable policy shifts and price volatility.

India Steps Up: Production Hits a New Peak

In the fiscal year ending March 2025, Apple produced $22 billion worth of iPhones in India—a significant 60% year-over-year growth, Bloomberg reported. Currently, about 20% of all iPhones globally are assembled in India, a number that’s expected to rise sharply in the coming years.

Most of this surge comes from Foxconn’s massive facility in Tamil Nadu. Tata Electronics, which recently acquired Wistron's operations, has also taken charge of Pegatron’s production, marking a shift in Apple’s long-standing manufacturing strategy that heavily favored China.

Under Prime Minister Narendra Modi’s leadership, the Indian government is sweetening the deal. Apple is benefitting from production-linked incentives and may tap into a fresh $2.7 billion subsidy program aimed at boosting electronics and semiconductor manufacturing across the country.

A Tariff Shock That Changed the Game

Apple’s fast-tracked decision traces back to a major market jolt in early 2024 when Trump's tariffs wiped out $700 billion of the company’s market value. The company responded by exporting Indian-assembled iPhones to the US—a race against time to avoid further financial fallout.

Yet, there are hurdles ahead. Assembly is only the final leg of the iPhone manufacturing journey. Apple still depends heavily on Chinese suppliers for components. According to the FT report, experts believe a full supply chain shift could take years. Bloomberg Intelligence estimates it may take up to eight years just to move 10% of Apple’s production away from China.

Ironically, the shift doesn’t fully align with Trump’s own push to bring manufacturing jobs back to American soil. Analysts note that the US lacks the workforce and infrastructure needed to support iPhone production at scale, making India a more practical and scalable solution.

“Moving at Light Speed”

"We believe this is going to be an important move for Apple to be able to maintain its growth and momentum," Daniel Newman, CEO of the Futurum Group, told the Financial Times. "We are seeing in real-time how a company with these resources is moving at relative light speed to address the tariff risk."

When approached, Apple declined to comment on the report.

The Broader Trend: Tech Turns to Diversification

Apple's shift is not unique. It is a reflection of a wider trend in the tech world towards supply chain diversification. The COVID-19 pandemic revealed the weakness of China-centric production paradigms—particularly during lockdowns that crippled Apple's largest Chinese factory. Now, increasing geopolitical turmoil only fuels the fire.

To ready itself for possible supply chain interruptions, Apple sent 57.9 million iPhones in Q1 2025—a 10% jump over last year during the same time period—as it stockpiled US inventories ahead of when new tariffs would take effect. That action created a visible surge in consumer demand, with Apple Stores seeing a stampede of customers looking to get in front of any pending price increases.

Looking Ahead: India’s Role in Apple’s Future

With its next quarterly earnings announcement looming, Apple will be put under the microscope on several fronts—how tariffs have affected revenue, how India fits into its long-term manufacturing plan, and whether the aggressive production targets it has set for 2025 are realistic.

Though the shift won't sever Apple's connection to China entirely, the company's message is clear as day: the future of the iPhone—at least in the US—will be made more and more in India.