Apple to Shift Entire US iPhone Production to India by 2026

Apple is set to relocate the entire assembly of iPhones sold in the US to India by 2026. The heightened trade tensions between US and China has prompted the tech giant to speed up its supply chain diversification, the Financial Times reported.

The move aims to shift the production of close to 60 million iPhones sold annually in the US to India by the end of 2026.

Is manufacturing becoming expensive in China?

Apple heavily depends on Chinese assembly via Foxconn. However, the tariff levied by the Trump administration crossed over 100% on few Chinese imports, thereby making it expensive.

Though smartphones and electronics received temporary exemption from the high tariff bands, products made in China still attract a 20% duty.

India’s trade deal with US

India is set to seal a trade deal with Washington. US Vice President JD Vance described progress on this front as “very good”. India is expected to become the first country in the world to secure a deal with the US and therefore avoid Trump's reciprocal tariffs.

Are tech companies eyeing India?

Apple is not the only company looking forward to shifting its manufacturing base. As per reports, Samsung is also looking forward to shifting smartphone production from Vietnam to India after the US imposed a 46% tariff on Vietnamese imports. Alphabet Inc, the parent company of Google is in discussions with manufacturing partners like Dixon Technologies and Foxconn to shift its Pixel smartphone production from Vietnam to India.