Apple is aiming to transition the majority of its iPhones sold in the United States to be produced in India by the end of 2026. This acceleration in plans comes as the company seeks to mitigate potential increases in tariffs in China, which is currently its primary manufacturing hub, according to a source cited by Reuters.
The technology giant is engaging in urgent discussions with its contract manufacturers, Foxconn and Tata, to facilitate this shift. The source, preferring to remain anonymous due to the confidential nature of the planning, indicated that progress is being made.
Apple, Tata, and Foxconn have not yet provided any comment regarding this situation.
Apple typically sells over 60 million iPhones in the US each year, with approximately 80 percent of these devices currently manufactured in China. The company is now looking to relocate the bulk of that production to India, the source noted.
In response to previous tariffs imposed by US President Donald Trump, Apple has already increased its manufacturing output in India, sending around 600 tons of iPhones valued at $2 billion to the United States in March. This shipment set a new record for its contractors, Tata and Foxconn, with the latter alone contributing smartphones worth $1.3 billion, as reported last week.
In April, the US administration enforced a 26 percent duty on imports from India, a significantly lower rate than the over 100 percent tariffs imposed on Chinese imports at that time. Recently, Washington has suspended most tariffs for a three-month period, excluding those on Chinese goods.
The Trump administration has also expressed a willingness to ease tensions in the trade war between China and the US, a conflict that has heightened concerns about a recession.
The Financial Times initially disclosed the details of Apple’s strategy on Friday.
As Apple diversifies its production away from China, India has become a vital part of its strategy. Foxconn and Tata, the company’s two primary suppliers in India, currently operate three factories and are in the process of constructing two additional ones.