According to a report from the Financial Times, Apple is set to move the assembly of all iPhones sold in the United States to India as early as next year, seeking to distance itself from China to avoid high tariffs.
The company has not provided a comment in response to a Reuters inquiry.
The trade conflict initiated by US President Donald Trump is prompting tech firms to broaden their supply chains. Apple is strategically positioning India as a vital part of its manufacturing plans, even though its suppliers in the country currently account for just a small portion of global iPhone production.
Experts had previously cautioned that consumer items like iPhones could be severely affected by Trump’s extensive tariffs, and noted that iPhone prices in the US could rise significantly due to Apple’s strong reliance on imports from China.
Increased prices could compress Apple’s profit margins and provide an advantage to Android smartphone brands.
Earlier this month, the US government granted exemptions from tariffs for smartphones, computers, and other electronics largely imported from China, which has given some relief to tech companies like Apple.
The company sells over 220 million iPhones worldwide annually, with Counterpoint Research estimating that about 20% of all iPhone imports to the US are sourced from India, with the remainder coming from China.
Foxconn and Tata, Apple’s primary suppliers in India, operate three factories, with two additional ones currently being built.
In March, Foxconn and Tata exported nearly $2 billion worth of iPhones from India to the US, marking a record high, as per customs data.
Sources told Reuters that Foxconn’s facility in Chennai is now operating on Sundays, which is typically a day off, and produced 20 million iPhones last year, including the newest iPhone 15 and iPhone 16 models.
