Apple Accelerates iPhone Production Shift to India Amid US-China Trade Tensions
As trade tensions between the United States and China escalate, Apple is accelerating its strategy to move most of its iPhone manufacturing to India. The development comes as Washington's Chinese tariffs, which total more than 100 percent under President Donald Trump's regime, persist in generating uncertainty regarding global supply chain resilience and resulting cost inflation for American shoppers.
To counter these threats, Apple is growing its presence in India with new manufacturing plants and higher exports. Apple, as quoted by sources from Reuters, is poised to make India a key production hub for iPhones, particularly focusing on the U.S. market. In March alone, the company shipped 600 tons of iPhones worth $2 billion to the U.S. from India a record monthly shipment. Of this, veteran Taiwanese partner Foxconn has put in $1.3 billion, while Tata Electronics provided the rest.
A major step in this direction is the functioning of a new iPhone assembly line at Tata Electronics' Hosur, Tamil Nadu, facility that is already producing older models of iPhones. Further, Foxconn is close to completing a $2.6 billion factory in Bengaluru. The plant is likely to start operations in the near future, with an initial single assembly line capable of producing between 300 to 500 units an hour. The plant is also likely to produce the future iPhone 16 and 16e models.
Foxconn's facility in Bengaluru is expected to be completed completely by December 2027 and is anticipated to create about 50,000 jobs. Such speedy expansion in the facilities attests to increasing Indian participation in Apple's manufacturing plan on the global level.
Today, China is producing more than 75 percent of global iPhones. India has, however, continually raised its contribution to around 18 percent, as researched by market research firm Counterpoint. Apple is said to plan to manufacture the lion's share of iPhones exported to the U.S. in India by 2026.
Tata, which is a relatively new player in Apple's supply chain, has rapidly emerged as a major partner. Together with Foxconn, Tata is now poised to run five iPhone manufacturing facilities in India, bolstering Apple's push to diversify its manufacturing base while leveraging India's expanding industrial capabilities.
As the geopolitical environment evolves, Apple's turn towards India represents a major realignment of global electronics manufacturing.
