Apple to Shift Majority of U.S. iPhone Production to India by 2026 Amid Trade Pressures

Cupertino/New Delhi — In a bold move to navigate the growing geopolitical rift between the United States and China, Apple Inc. is accelerating its plan to manufacture most iPhones sold in the U.S. from India by the end of 2026. The decision underscores Apple’s strategic realignment to de-risk its supply chain and shield its U.S. business from mounting Trump-era tariffs and Beijing-Washington tensions.

Key Highlights:

• Apple aims to double iPhone output in India to meet U.S. demand.

• Over 60 million iPhones are sold annually in the U.S.

• India now produces 20% of global iPhones.

• Apple assembled $22 billion worth of iPhones in India in FY24-25.

• India exports $17.5 billion worth of iPhones, largely to the U.S.

From Made in China to Made in India

The shift represents a critical transformation in Apple’s global manufacturing footprint. According to sources familiar with the matter, the company plans to source the majority of U.S.-bound iPhones from India, up from the current 20%.

The pivot to India began during the COVID-19 pandemic, when China’s prolonged lockdowns disrupted production at Apple’s largest plants. Since then, tariff policies and supply chain nationalism have reinforced Apple's push to diversify its manufacturing base.

“The goal is to ensure that most iPhones sold in the U.S. by end-2026 are made in India,” insiders confirmed.

Strategic Manufacturing Partners in India

Much of Apple’s Indian production takes place at Foxconn’s sprawling facility in southern India, while Tata Group, which acquired Wistron’s local unit and oversees Pegatron’s India operations, plays a crucial supporting role.

These partnerships are central to Apple’s India strategy, enabling the company to assemble its entire iPhone lineup, including high-end titanium Pro models, within the country.

Trump Tariffs Fuel the Shift

Apple's manufacturing migration gained momentum after former President Donald Trump reintroduced the idea of reciprocal tariffs on imports earlier this year. Although a recent exemption removed tariffs on smartphones and computers, Trump’s 20% levy on Chinese imports — part of a broader crackdown on Beijing — remains in force.

This means:

• iPhones made in China are still subject to tariffs.

• India-made iPhones are tariff-exempt, making them more cost-effective for the U.S. market.

According to Bloomberg, Apple even airlifted over 600 tonnes of iPhones to the U.S. earlier this year to beat incoming tariff deadlines.

India’s Incentives: Modi’s Manufacturing Vision

India’s emergence as a manufacturing powerhouse is backed by Prime Minister Narendra Modi’s production-linked incentive (PLI) schemes, which have helped Apple scale up rapidly. The Indian government reported that Apple exported ₹1.5 trillion ($17.5 billion) worth of iPhones in the fiscal year ending March 2025.

These state subsidies and policy support are critical as Apple seeks to ramp up operations and match U.S. demand volumes from Indian soil.

Outlook: A Global Supply Chain Reshaped

The implications of Apple’s strategy are profound:

• India is poised to become a global iPhone export hub.

• China’s dominance in Apple’s supply chain could diminish.

• U.S. consumers may experience fewer disruptions in availability and cost.

• Other tech giants may follow suit, encouraged by Apple’s precedent and global trade pressures.

Conclusion: iPhones to Reflect a New Geopolitical Era

Apple’s accelerated shift to India is more than a supply chain move — it is a geopolitical strategy. As tensions persist and tariffs loom large, Cupertino is betting big on India not just as a production base, but as a central player in its global operations.

By 2026, the label "Assembled in India" may be the new normal for millions of iPhones sold across America.