In a strategic move to diversify its manufacturing operations, Apple is accelerating efforts to shift most of its iPhone production for the US market from China to India by the end of 2026, according to a Reuters report.
The tech giant is engaged in urgent discussions with its primary contract manufacturers, Foxconn and Tata, to meet this ambitious goal, sources familiar with the matter revealed. The move comes as Apple looks to navigate potential tariff hikes linked to China, its current major manufacturing base.
Currently, around 80% of the 60 million iPhones sold annually in the US are produced in China. Apple, along with partners Foxconn and Tata, is now working aggressively to tilt that balance in favor of Indian factories.
Despite India’s higher manufacturing costs — estimated at 5-8% more than China and sometimes reaching up to 10% — recent policy shifts and reduced tariffs from the US have made India a more attractive alternative. Earlier this year, Apple shipped $2 billion worth of iPhones from India to the US in March alone, a record for Indian production.
Foxconn and Tata already operate three iPhone manufacturing facilities in India, with two additional plants under construction.
Prime Minister Narendra Modi’s push to make India a global smartphone manufacturing hub has played a key role in Apple’s decision. However, India’s higher import duties on components still present challenges that companies are working to overcome.
The Financial Times first reported Apple’s strategic manufacturing realignment on Friday. With the US-China trade war creating persistent uncertainties, Apple’s expansion in India signals a major shift in global tech manufacturing trends.
