Apple's Strategic Reboot: Manufacturing Shift to India

Apple plans to manufacture most of its U.S.-sold iPhones in India by the end of 2026, pushing efforts to reduce reliance on China due to potential higher tariffs. In collaboration with Foxconn and Tata, Apple is leveraging India's position as a smartphone hub despite comparatively higher production costs.

Apple is accelerating its strategy to move the manufacturing of a majority of iPhones sold in the U.S. to India by 2026. This decision aims to mitigate the impact of potential tariff increases in China, according to sources familiar with the matter.

Currently, around 80% of the iPhones sold in the U.S. are manufactured in China, but Apple is urgently collaborating with partners Foxconn and Tata to shift production. The urgency is driven by geopolitical tensions and recent tariffs impacting the industry.

While India levies higher duties on mobile phone parts, making production costlier than in China, the Indian government's push for local smartphone manufacturing aligns with Apple's long-term goals. This move represents a significant transition in Apple's supply chain dynamics.

(With inputs from agencies.)