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Apple is reportedly planning a major manufacturing pivot for iPhones sold in the United States, away from China.
The Financial Times reported that Apple is planning to switch the assembly of all iPhones for the US market to India, as the company seeks to reduce its reliance on a Chinese manufacturing base amid US President Donald Trump’s trade war.
Reuters meanwhile, citing a source who declined to be named as the planning process is confidential, reported that Apple aims to make most of its iPhones sold in the US at factories in India by the end of 2026.
India assembly
Reuters also reported that Apple is speeding up those plans to navigate potentially higher tariffs in China, its main manufacturing base.
After the global chaos unleashed by Trump when he announced America’s so called “Liberation Day” sweeping tariffs, Apple reportedly held urgent talks with contract manufacturers Foxconn and Tata to pivot most or all iPhone assembley for the US to India and away from China.
Apple at one stage had faced the prospect of having to absorb (or pass on to consumers) the 145 percent tariff on Chinese imports, imposed by Trump.
This resulted in Apple earlier this month chartering cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million devices, to the United States from India, after it stepped up production in that country in an effort to beat Trump’s tariffs.
Sources at the time indicated that the smartphone giant had reportedly lobbied Indian airport authorities to cut to six hours the time needed to clear customs at the Chennai airport in the southern state of Tamil Nadu, down from 30 hours.
However, Trump’s subsequent decision to exclude smartphones from the heaviest Chinese tariffs helped ease Apple’s immediate supply chain worries.
That said, Apple is still subject to a 20 percent levy on all Chinese goods as part of Trump’s response to China’s role in producing Fentanyl.
Manufacturing locations
Apple reportedly sells over 60 million iPhones in the United States annually, with approximately 80 percent of them made in China currently.
The Guardian noted that the complex manufacturing process behind iPhones involves more than 1,000 components sourced from all over the world, and currently the iPhone is largely put together in China.
The Guardian also noted that Apple is highly secretive about details of its production processes but analysts estimate that about 90 percent of its iPhones are assembled in the country.
The FT reported that Apple plans to source from India the more than 60 million iPhones sold in the US annually by the end of 2026 – a commitment that would require more than doubling iPhone assembly in India.
At the moment, Apple has three assembly plants in India.
In March it temporarily extended operations to Sunday working at the biggest Foxconn India factory in Chennai.
But it is not just iPhones that are mostly manufactured in China.
More that 50 percent of Mac products and 80 percent of iPads are assembled in China as well, according to US investment bank Evercore.
Apple Watches meanwhile are largely built in Vietnam.
It remains to be seen whether the manufacturing switch will drive up prices for the iPhone.
It has been reported that iPhone manufacturing costs in India are 5-8 percent higher than in China, with the difference rising to as much as 10 percent in some cases.
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