In what could be a major move, Apple Inc, may be planning to move its manufacturing operations to India in a significant way. According to sources cited by the Financial Times, Apple is set to relocate all iPhone assembly for the U.S. market to India by the end of next year.
The decision is reportedly part of the company’s broader strategy to reduce its reliance on China, especially after the latest tariff regulations announced by President Donald Trump.
Apple product manufacturing in India
Apple has significantly increased its manufacturing presence in India in recent years, primarily assembling iPhones through key partners like Foxconn, Wistron, and Pegatron. This shift is part of Apple’s strategy to reduce dependency on China, benefiting from India’s lower labor costs and government incentives like the Production-Linked Incentive (PLI) scheme. iPhones, including models like the iPhone 13 and iPhone 14, are produced locally, helping Apple avoid high import duties and cater to the growing Indian market.
READ: Apple flies 600 tons of iPhones from India to battle Trump’s tariffs (April 10, 2025)
Manufacturing in India also enables Apple to expand exports, particularly to Europe and the Middle East. Despite challenges such as infrastructure and skilled labour, Apple’s move aligns with India’s growing importance as a global manufacturing hub. As Apple continues to expand its operations, India is poised to play an even more significant role in the company’s global supply chain and market strategy.
Following the announcement of higher tariffs on Chinese goods, Apple swiftly began routing more India-made iPhones to the U.S. to avoid additional import duties. The company now aims to manufacture over 60 million iPhones annually in India by 2026, doubling current production levels.
Apple’s move to India could have several positive impacts on India. First, it would boost India’s manufacturing sector, creating more jobs, particularly in electronics and supply chain management. This shift could lead to greater investment in infrastructure, skill development, and technology, helping India further integrate into the global supply chain.
READ: Trump’s tariffs make Apple lose ‘most valuable company’ title (April 9, 2025)
In addition, it would increase India’s export potential, as local iPhone production for the U.S. market would contribute to foreign exchange earnings and strengthen India’s trade ties with the U.S. It could also position India as a key global manufacturing hub for Apple, increasing the country’s influence in the tech sector.
However, it may also bring challenges such as ensuring a skilled workforce and managing complex regulatory issues. Overall, this shift could significantly enhance India’s manufacturing capabilities, economic growth, and global competitiveness.
Vishnu Kaimal has over a decade of experience in both broadsheet and digital journalism. A graduate of the Asian College of Journalism Chennai, he has published stories for The Hindu, The New Indian Express and International Business Times, among other publications. He is an avid reader who spends his free time buried in books and when the mood strikes him he immersed himself in narrative driven videogames.