Apple's Shift to India: Redefining iPhone Production

Apple plans to move most of its U.S.-sold iPhone production from China to India by 2026 to avoid higher Chinese tariffs. Urgent talks with Foxconn and Tata are underway. In April, U.S. applied lower tariffs on Indian imports, favoring this shift. India becomes crucial in Apple's global strategy.

Apple is aggressively pursuing plans to relocate the bulk of its iPhone manufacturing from China to India by the end of 2026, as a strategic move to mitigate the impact of potential tariff hikes in China, which has long been its primary production hub.

The tech giant is engaged in urgent discussions with key contract manufacturers Foxconn and Tata, aiming to expedite this strategic realignment. As of now, both companies have not commented on the matter. Currently, Apple manufactures around 80% of the 60 million iPhones sold annually in the U.S. in China, but it now seeks to transition much of this production to India. In a significant show of commitment, Apple increased its Indian output, shipping iPhones valued at $2 billion to the U.S. earlier this year.

This move coincides with the imposition of a new 26% tariff on Indian imports by the U.S., significantly lower than the duties faced by Chinese imports. These developments come as the Trump administration attempts to ease trade tensions with China, setting the stage for India's enhanced role in Apple's supply chain.

(With inputs from agencies.)