Apple plans to move U.S. iPhone production to India as China trade tensions rise

April 28, 2025

Well, we are all aware of the tariff war going on between China and the USA lately. This is sure to impact the business of both countries. Apple, in such a situation, is playing it safe by shifting all iPhone assembly for the U.S. market to India, changing its manufacturing strategy in a big way. The company now wants to rely less on Chinese factories and is speeding up production in India to stay ahead of possible import taxes and delays.

Apple turns to India for iPhone assembly

Apple began building iPhones in India back in 2017 with older models like the iPhone 6s and SE, partnering with Wistron. Now, things are moving much faster. Apple plans to make all 60 million iPhones sold each year in the U.S. in India by 2026. To meet this goal, production in India must more than double. That’s a big task, but Apple is pushing hard to make it happen.

Foxconn and Tata, two of Apple’s key partners in India, have already sent out nearly $2 billion worth of iPhones to the U.S. in just one month. Apple even rented cargo planes to fly over 600 tons or up to 1.5 million iPhones to the U.S. to keep stores stocked before tariffs hit. That’s HUGE!! This fast action shows how serious Apple is about moving away from China quickly.

Also, read:

How the China–U.S. trade fight affects Apple

Apple has built most of its iPhones in China for years, but now that’s becoming a risk. Trump’s new trade policies could place a 145% tariff on Chinese imports. Even though smartphones haven’t been hit with the highest fees yet, Apple still pays a 20% tax on goods made in China. Tim Cook tried to get exemptions, but there’s no guarantee, and rules can change fast.

That’s why Apple is speeding up its shift to India. By early 2024, 14% of iPhones were already made there. Experts think this will hit 25% by year-end. India also faces a 26% U.S. import tax, but the U.S. paused it for 90 days so India can work out a better deal. U.S. Vice President JD Vance visited India recently and said both sides were making “very good progress.”

Availability

Apple is working fast to get Indian-assembled iPhones into U.S. stores. They’re already shipping large volumes and increasing weekend shifts at Indian factories to meet the growing demand. The company wants to rely more on India not just for this year, but long-term. While China still handles most iPhone, iPad, and Mac production, this change shows Apple is serious about rethinking where it builds its most important products. If tariffs keep growing, this new plan could protect both prices and supply for American customers. So, what do you think? Will iPhones get cheaper in Nepal?