Apple is reportedly considering shifting the entire assembly of iPhones sold in the United States to India by as early as next year. This move would represent a significant shift in Apple’s global manufacturing strategy as the company seeks to reduce its reliance on China, according to a report by the Financial Times.
The final decision will depend on how quickly India can enhance its supply chain capabilities and the progression of trade discussions between China and the United States.
US President Donald Trump has been vocal about urging Apple to relocate production away from China amid ongoing trade tensions, with recent confirmations that talks regarding tariffs are still underway.
In the meantime, Apple’s contract manufacturers in India have already begun to increase production. Foxconn’s plant in Bengaluru is expected to commence operations this month and could ultimately produce up to 20 million units at its peak capacity.
Significantly, about 70 percent of the exports from Apple’s iPhone supply chain have been facilitated by Foxconn in Tamil Nadu, which contributes nearly 50 percent of overseas shipments. Reports indicate that exports from the Foxconn factory have experienced over a 40 percent increase compared to the previous financial year.
Apple’s iPhone production in India has reached a record high, with devices valued at $22 billion assembled in the past year. India now accounts for nearly 20 percent of Apple’s total iPhone output globally, underscoring the country’s growing importance in Apple’s manufacturing strategy.
Additionally, the Indian market demonstrates robust growth for Apple, with over 3 million iPhones shipped from India in the first quarter of 2025—setting a new record for the company in the country. This growth has been bolstered by various affordability schemes, including no-cost EMIs, cashback offers, and discounts from online retailers.
Industry experts anticipate that Apple will sustain a steady annual growth rate of 10-15 percent in India this year. “With manufacturing ramping up and local demand increasing, India is rapidly becoming a pivotal component of Apple’s global strategy,” experts noted.