Apple is planning to shift most of its iPhone assembly for the United States to India by the end of 2026, according to a report first published by The Financial Times. This move is part of the company’s efforts to reduce costs caused by US tariffs on Chinese imports. Apple currently makes 80% of the iPhones sold in the US in China, but rising tariffs and trade tensions have forced the tech giant to look elsewhere. A source told Reuters that Apple is now working with its Indian manufacturing partners, including Foxconn and the Tata Group, to make this transition possible. Apple has already ma

  Apple is planning to shift most of its iPhone assembly for the United States to India by the end of 2026, according to a report first published by The Financial Times. This move is part of the company’s efforts to reduce costs caused by US tariffs on Chinese imports. Apple currently makes 80% of the iPhones sold in the US in China, but rising tariffs and trade tensions have forced the tech giant to look elsewhere. A source told Reuters that Apple is now working with its Indian manufacturing partners, including Foxconn and the Tata Group, to make this transition possible. Apple has already made progress. In March 2025, it shipped $2 billion worth of iPhones from India to the US, which is a record for both Foxconn and Tata. The Indian government has also helped by removing import taxes on some phone parts. This has made manufacturing in India more competitive. “If you’re charging import tax for intermediary goods, then you cannot actually be competitive versus somebody who does not,” Babak Hafezi, CEO of Hafezi Capital, told Al Jazeera. Apple produced $22 billion worth of iPhones in India in the year ending March 2025, a 60% increase from the year before. However, only 20% of iPhones worldwide are made in India so far. Still, the shift won't be easy. Making iPhones in India is 5% to 8% more expensive than in China, Reuters reported. “There are still many roadblocks,” said Dan Ives, an analyst at Wedbush Securities. “India will help, but it’s not moving the needle on China’s dependence for Apple. It will take years to make this move.” Chinese authoritiesare also reportedly slowing down Apple’s move. The Information reported that Foxconn’s shipments have been delayed or blocked, with some export applications denied or held up for four months. Ives said Apple’s plan to move iPhone assembly for the US market to India could cost the company between $30 billion and $40 billion Experts also worry if India’s infrastructure is ready. “They have massive amounts of infrastructure problems in terms of traffic and mobility,” Hafezi told Al Jazeera. “You need secure, continuous, and productive infrastructure to maximise manufacturing as best as you can and be globally competitive.” The US and India are now discussing a possible bilateral trade deal. Earlier this week, US Vice President JD Vance met Indian Prime Minister Narendra Modi, saying they made “good progress” in talks. Meanwhile, US-China trade tensions continue, but there is a sign of a possible thaw. Former President Donald Trump said he had spoken with Chinese President Xi Jinping, though he didn’t say when.

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