Apple to make most iPhones in India by 2026
Apple is making its most decisive move yet to reduce reliance on China. By the end of 2026, the company plans to assemble all iPhones bound for the U.S. market in India, signaling a bold new chapter in its global supply chain strategy.
This ambitious transition will require Apple to double its iPhone production capacity in India, where it currently partners with Tata Electronics and Foxconn. While India has been gradually growing as a secondary hub for Apple’s manufacturing, this marks a significant acceleration in the company’s diversification efforts.
For years, Apple has relied almost exclusively on Chinese factories—particularly Foxconn facilities—to manufacture iPhones. As of 2024, China still accounts for the overwhelming majority of Apple’s smartphone output. But growing geopolitical tensions and steep new tariffs are forcing a rethink.
The U.S. market represents about 28% of global iPhone shipments, which totaled 232.1 million units last year, according to IDC. That makes it a crucial customer base—and a vulnerable one under the current political climate. President Trump’s recent imposition of sweeping tariffs on Chinese imports caused Apple’s market value to plunge by $700 billion. To cushion the blow, Apple rushed Indian-assembled iPhones into the U.S. ahead of the tariff hikes.
Behind the scenes, CEO Tim Cook has been working diplomatically to shield Apple from the worst of the fallout. He reportedly secured a temporary exemption on tariffs for iPhones, iPads, Macs, and Apple Watches after speaking with Commerce Secretary Howard Lutnick and other White House officials. But Trump later warned that the tech sector would face new tariff categories, suggesting the reprieve may be short-lived.
India is increasingly at the center of Apple’s long-term strategy. Beyond assembly lines, Apple’s growing presence there is supported by improving ties between India and the U.S., with a bilateral trade agreement potentially on the horizon. Such a deal could offer Apple more favorable trade terms than it currently enjoys with China.
Still, challenges remain. Hundreds of iPhone components are still sourced from Chinese suppliers, making it impossible to decouple entirely—at least in the short term. Despite pledging a $500 billion investment in the U.S., Apple has no plans to bring iPhone manufacturing stateside.
With Apple set to report quarterly earnings next week, all eyes will be on whether these dramatic supply chain shifts and the escalating trade war will start to dent its profitability—or open the door to a leaner, more geopolitically resilient Apple.
