Apple is preparing to completely shift the assembly of iPhones destined for the U.S. market from China to India by the end of 2026, according to a new report from the Financial Times.
This major strategic pivot comes in response to escalating trade tensions and soaring tariffs imposed by the U.S. government on Chinese imports — with some rates reaching as high as 145%. The rising costs have prompted Apple to urgently rework its global supply chain to ensure the flagship iPhone remains competitively priced.
Currently, around 80% of the more than 60 million iPhones sold annually in the U.S. are assembled in China, primarily by longtime partner Foxconn. For nearly two decades, Apple has relied on China’s massive manufacturing infrastructure. However, the recent 20% U.S. tariff on smartphones imported from China has added new urgency to Apple’s diversification efforts. In April, Apple shipped approximately 1.5 million India-assembled iPhones to the U.S., fast-tracking customs processes with local authorities.
India has quickly become the cornerstone of Apple’s new manufacturing strategy. Since 2017, Apple has partnered with companies like Tata Electronics and Foxconn to assemble iPhones there — initially starting with lower-end models, and since 2023, expanding to top-tier devices. To meet its 2026 goal, Apple will need to double its annual iPhone output in India from about 40 million to over 80 million units, requiring substantial investments in local facilities.
Despite the momentum, challenges remain. Production costs in India are estimated to be 5% to 10% higher than in China, due to tariffs on imported components and continued dependence on Chinese suppliers for pre-assembled parts. Furthermore, maintaining Apple’s strict quality standards has proven difficult at some Indian plants.
Still, India’s growing manufacturing ecosystem offers a promising alternative. With shifting U.S. policies and the specter of even higher tariffs looming, the end of the “iPhone Made in China” era might soon be in sight.