Apple shifts iPhone production to India amid trade tensions
Apple will no longer assemble iPhones sold in the USA in China. The tech giant will move production to India, which is expected to occur in 2026, according to the Financial Times. This shift results from the trade war initiated by Donald Trump.
Apple plans to diversify its supply chain and intends to relocate the assembly of 60 million iPhones to India by 2026. This would mark a significant change in the activities of the American company. The Financial Times emphasises that nearly two decades ago, Apple invested in China and established the "world's best production line," contributing to the growth of a $3 (£2.3) trillion giant.
The "FT" notes that China, where Apple manufactures most of its iPhones through third parties like Foxconn, has faced aggressive tariffs by the US president. However, he has since signaled a willingness to negotiate with Beijing, the daily adds.
Apple betting on India
At the beginning of April, Apple lost $450 (£338) billion in market capitalisation. This was a direct effect of the announcement to introduce tariffs, which Donald Trump then withdrew. At the same time, Apple "rushed to export" goods from India. The company chartered cargo flights to transport 600 tonnes (approximately 1.5 million units) of iPhones from India to the USA. This was a strategy to avoid tariffs imposed on China.
The British newspaper adds that assembly is the final stage of the manufacturing process, where hundreds of components, including those supplied by China, are combined.
Let's remember that Trump initially announced "reciprocal" tariffs of over 100% on imports from China. However, he later mentioned a temporary "reprieve" for smartphones. The "FT" explains that these devices are still subject to a separate 20% rate, which applies to all imports from China.
The White House imposed reciprocal tariffs on India at 26%, but the introduction of additional tariffs was suspended when the government in New Delhi announced its intention to reach an agreement with the Trump administration. This week, Vice President J.D. Vance visited India. He believes the countries are making "significant progress."
Apple sells over 220 million iPhones globally each year. The analytics firm Counterpoint Research estimates that 20% of all iPhones imported to the USA come from India, with the remainder coming from China.
"We believe this is going to be an important move for Apple to be able to maintain its growth and momentum," said Daniel Newman, CEO of the research firm Futurum Group.
