CUPERTINO/SHENZHEN – Apple plans to manufacture all iPhones for the U.S. market in India by the end of 2026, aiming to avoid the impact of rising U.S. tariffs on Chinese imports. Currently, most iPhones are made in China, but the new tariffs—raised to as much as 145%—have prompted Apple to reconsider its production strategy.

India Becomes a Key Production Hub

To supply the over 60 million iPhones sold annually in the U.S. from India, Apple must double its production capacity there. The company has already significantly expanded manufacturing in India, producing iPhones worth around $22 billion last fiscal year. Still, only about 20% of global iPhone production currently takes place in India.

Temporary Tariff Exemptions and Geopolitical Tensions

Although the U.S. has temporarily exempted smartphones and other electronics from the new tariffs, the situation remains uncertain. President Trump emphasized that these exemptions are only temporary and not a permanent solution.

Strategic realignment

Apple’s decision to shift iPhone production for the U.S. market to India is a direct response to escalating trade tensions between the U.S. and China. This strategic realignment aims to diversify supply chains and safeguard against future geopolitical risks. (zai)