Apple Accelerates iPhone Production Shift to India Amid Tariff Pressures

Apple Inc. is rapidly expanding its iPhone manufacturing operations in India, aiming to reduce reliance on Chinese production due to escalating U.S.-China trade tensions and significant tariffs. The company plans to produce all iPhones for the U.S. market in India by the end of 2026, a move that would double current output to over 60 million units annually.

This strategic shift includes the initiation of production at a new Tata Electronics facility in Tamil Nadu and the imminent commencement of operations at a $2.6 billion Foxconn plant in Bengaluru. These developments are part of Apple’s broader effort to diversify its supply chain and mitigate risks associated with geopolitical uncertainties.

In March 2025, Apple exported a record $2 billion worth of iPhones from India to the U.S., underscoring the country’s growing role in the company’s manufacturing strategy. India now accounts for approximately 18% of global iPhone production, a figure expected to rise as Apple continues to invest in the region.

While challenges remain, including higher production costs and infrastructure limitations, Apple’s commitment to expanding its manufacturing footprint in India reflects a significant pivot in response to global trade dynamics.