Apple plans to move a large part of its iPhone production from China to India. The segment of production capacity to be moved is part of the iPhone maker’s approach to handling potential future Trump’s tariff on Chinese manufactured goods. The move is part of the company’s larger plan to double iPhone production capacity from South Asian countries by the end of 2026.
At present, 80% of the iPhones sold (which translates to around 60 million iPhones) in the United States are produced in China. While the Trump administration has removed the tariff from consumer electronic goods, including smartphones. Hence, Apple will not face any major financial hurdles in the near future.
More expensive to produce electronics goods in India
Apple is reportedly in discussion with manufacturing giants such as Foxconn and Tata Group to enable increased electronics production from India. In March 2025, the iPhone maker shipped approximately $2 billion worth iPhones to the United States. The record production marked a milestone for both existing production players in India – Tata and Foxconn.
According to Reuters, the iPhone production shift from China to India will likely cost Apple an additional 5 – 8 percent, as it is more expensive to manufacture goods in India. China has optimized its electronics manufacturing and assembly over the course of four decades. It will take a lot of effort for countries like India to build large electronic manufacturing capacity, including government support and foreign direct investment (FD).
The Indian government, spearheaded by the globally well-liked Prime Minister Narendra Modi continues to push the country towards building manufacturing and production facilities. The administration has set a target of 2047 to build a developed (‘Viksit’ as said in the local language) India.
“India will help, but it’s not moving the needle on China’s dependence for Apple. It will take years to make this move, as Apple is caught in the tariff storm,” said Dan Ives, analyst at Wedbush Securities.
