Apple is exploring the possibility of relocating the assembly of iPhones sold in the US from China to India, according to a report by ET. This consideration comes amid an escalating trade war between the US and China, which has seen the US impose a staggering 145 percent tariff on Chinese imports, prompting China to respond with 125 percent tariffs on American goods. While these tariffs have significantly impacted the Asian economy, India has faced a much lighter burden with only a 26 percent tariff, which is considerably less than China’s.
Following Trump’s tariff announcements earlier this month, Apple quickly moved to export available iPhones made in India to the US to circumvent the steep tariffs on products from China. Although the US suspended these tariffs on smartphones temporarily, there is still a separate 20 percent levy applied to all imports from China.
In 2024, the US accounted for approximately 28 percent of Apple’s global iPhone shipments, which totaled 232.1 billion units, as reported by the International Data Corporation. Apple has been actively expanding its operational capacity in India, collaborating with contract manufacturers Foxconn and Tata Electronics. This push into India is part of Apple’s broader strategy to diversify its supply chain, aiming to source all of the over 60 million iPhones sold annually in the US by the end of 2026 from India.
As of March, Foxconn—Apple's largest manufacturing partner in India—achieved a remarkable milestone, exporting smartphones valued at $1.31 billion in that month alone, the highest figure recorded in a single month. This achievement is equivalent to the total of its exports for January and February combined, according to customs data. Meanwhile, iPhone exports from Tata Electronics surged by 63 percent compared to the previous month, reaching $612 million in March.
The assembly of iPhones marks the final stage in the production process, where hundreds of components come together to create the finished product. Despite this progress, Apple still remains heavily dependent on Chinese suppliers for many of these crucial parts.
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