Apple reportedly plans to shift production of most of its iPhones it sells in the US to its Indian factories by the end of 2026. CEO Tim Cook’s company aims to dodge massive tariffs on Chinese imports.
The Cupertino, California-based company has already added manufacturing capacity in India in recent years, but has accelerated these plans as US-China trade relations have deteriorated. That’s despite the fact that manufacturing costs can be as high as 10% in India.
Apple is holding an “emergency talk” with its major manufacturing partners, Foxconn and Tata, to promote India’s plans. Reuters reported. The two companies plan to have three total factories in India and two more.
This shift means that the number of iPhones made in India will reach around 80 million per year. Bloomberg reportedcite people who are familiar with this issue.
Currently, approximately 80% of the over 60 million iPhones Apple sells in the US each year are made in China.
Apple did not immediately reply to requests for a comment.
President Trump imposes a 145% tariff on goods made in China. And while the administration has recently shown that it is open to removing the situation, new trade contracts have yet to be fixed.
Trump also imposed a 26% rate on India and a 46% rate on Vietnam. This is another important production hub for Apple. But Trump suspended 90-day tariffs earlier this month as his administration engaged in negotiations.
In early April, Apple lost more than $300 billion in a day as investors digested the impact of Trump’s move on China’s high manufacturing footprint.
Earlier this month, Reuters reported that Apple had aired 600 tonnes of iPhones (about 1.5 million) from India to the US in order to build domestic inventory ahead of tariffs.
