Apple is planning to move the assembly of all iPhones sold in the United States to India by 2025, according to reports from the Financial Times and Moneycontrol. This strategic shift aims to mitigate the impact of escalating U.S- China trade tensions and high import tariffs on Chinese-made electronics. Currently, Apple manufactures most of its iPhones in China through partners like Foxconn, but has been expanding operations in India with partners such as Tata Electronics and Foxconn.
The decision to transition U.S.-bound iPhone production to India is influenced by several factors, including cost advantages over China and ongoing trade negotiations between the U.S. and India. Former U.S. President Donald Trump has long urged Apple to move production away from China, and recently confirmed that tariff discussions with Beijing are underway.
To meet the target, Apple will need to significantly increase production capacity in India, effectively doubling current output. Apple’s contract manufacturers are already scaling up in India. Foxconn’s new facility in Bengaluru is expected to be fully operational within weeks, with a peak capacity of producing 20 million units annually. India now accounts for nearly 20% of global iPhone assembly, with production worth $22 billion recorded over the past year, according to Bloomberg.
In Q1 2025, iPhone shipments from India topped 3 million units—the highest-ever first-quarter volume for the country.Research firm Counterpoint projects Apple to maintain a 10-15% year-on-year growth rate in India in 2025, indicating strong local demand alongside its expanding export footprint.
If the transition goes ahead as expected, India would become the exclusive assembly hub for iPhones destined for the United States-a significant milestone in Apple’s broader supply chain diversification strategy.
