Apple is increasingly shifting its iPhone production to India, with half of the devices for the US market now sourced from there, according to CEO Tim Cook. This strategic move comes in response to high tariffs on Chinese goods—currently at 145%—as compared to just 10% on Indian and Vietnamese-made products. Speaking after the company’s quarterly earnings, Cook confirmed that India would soon be listed as the ‘country of origin’ for many US-bound iPhones, while Vietnam is also being used for sourcing other Apple products.
Apple to Shift All US iPhone Assembly to India by 2026 Amid Tariff Pressures
Despite this shift, the majority of Apple’s global production still takes place in China, where it built a massive manufacturing base over two decades. However, Cook said the company has managed to limit the impact of new US tariffs by optimizing its supply chain. A JPMorgan analysis suggests that iPhones assembled in India would cost only about 2% more ($1,008) than those made in China ($938), significantly lower than the 30% increase if they were manufactured in the US.
Apple plans to move all US-sold iPhone assembly to India by 2026, especially after a $700 billion loss in market value following tariff tensions. To achieve this, Apple will need to double its production capacity in India. In 2024, Foxconn and Tata began importing pre-assembled component sets from China to support this ramp-up.
Apple Posts Strong Q2, Eyes Modest Growth Amid Tariff Uncertainty
In its Q2 results, Apple reported $95.4 billion in revenue, up from $90.75 billion last year. iPhones contributed $46.84 billion, leading the gains. Cook expects modest revenue growth in the upcoming quarter but acknowledged uncertainty beyond June due to the evolving tariff situation.
Trump’s recent reciprocal tariffs affect over 100 countries. Though there’s a 90-day pause, China was excluded, prompting retaliatory tariffs of 125% on US goods, intensifying trade tensions and accelerating Apple’s shift away from China.
Summary:
Apple is shifting half of its US iPhone production to India to avoid high Chinese tariffs. By 2026, all US-bound iPhones may be India-made. Despite a $700B market loss, Apple posted $95.4B in Q2 revenue. Trade tensions and evolving tariffs continue to shape its global supply chain strategy.
