Apple Inc. is planning to move the assembly of all iPhones sold in the US to India by next year, away from China, due to rising trade tensions between the US and China.
The proposed move aims to source over 60 million iPhones sold annually in the US from India by the end of 2026, according to people familiar with the matter.
This target would require doubling India’s iPhone output in just over a year, a significant acceleration from the nearly two decades Apple spent developing its production line in China.
Apple has become heavily reliant on China for manufacturing, but this leaves the company vulnerable to steep trade tariffs imposed by the US, particularly under President Donald Trump’s administration.
The company has been building its production capacity in India through contract manufacturers Tata Electronics and Foxconn, accelerating efforts after facing production disruptions in China due to civil unrest.
US tariffs on Chinese imports have already impacted production, with Chinese factories slowing down and sending workers home, despite hints of potential trade talks between the US and China.
Apple’s exposure to trade tensions could result in significant losses, potentially up to $700 billion in market capital.