1 minute read
| News
Apple plans to move production of almost all iPhone 18 units destined for the US market to India by the end of 2026. The move marks a major shift in Apple’s global manufacturing strategy, aimed at avoiding steep US tariffs on Chinese imports and reducing dependency on China.
Target: US Market iPhones Made in India
The company wants iPhones made in India to replace Chinese-made units sold in the US, where Apple shipped over 60 million iPhones last year. To achieve this, Apple must more than double its current output from India — a goal that demands rapid capacity expansion and greater supply chain coordination within the next 20 months.
India currently produces around 40 million iPhones annually, covering both domestic demand and exports. While Apple has steadily expanded its India-based manufacturing through partners like Foxconn and Tata Electronics, local production accounts for just 15% of global iPhone output. Doubling that share to meet US demand would require one of the company’s largest year-on-year production jumps to date.
Barriers to Expansion: Supply Chain and Labor Hurdles
Apple has already faced logistical and political hurdles in its India expansion. As reported by the Financial Times, challenges include strict Indian labor laws, quality control issues in local sub-assembly, and delays caused by Chinese authorities restricting the export of essential manufacturing equipment.
Some Apple suppliers have also struggled to secure Indian work visas for their engineers, complicating training and production ramp-up.
Despite these roadblocks, Apple is under pressure to act. Former President Donald Trump’s tariff policy on Chinese goods, which still includes a 20% rate on smartphones, wiped $700 billion from Apple’s market value when first announced. Though talks between Washington and Beijing have resumed, the risk of further tariffs has pushed Apple to accelerate its India strategy.
A High-Stakes Shift in Apple’s Supply Chain
The company began shipping Indian-assembled iPhones to the US during earlier tariff phases and appears ready to expand that effort significantly. If successful, this would be the first time Apple shifts full-scale production of a flagship iPhone model for the US market outside China.
According to the Financial Times, Apple’s goal is ambitious and not guaranteed. To meet the 2026 target, the company must overcome operational bottlenecks, supplier resistance in China, and continued delays in Indian manufacturing infrastructure. Still, the shift signals Apple’s clearest pivot yet in response to geopolitical and trade pressures.