All US iPhones Will Soon Be Produced in India: Report

Apple plans to move all iPhone production for the US market to India, The Financial Times reported, citing people familiar with the matter. The shift comes in response to President Donald Trump’s intensified trade war with China during his second term.

Apple began diversifying production away from China in 2017, starting with the iPhone 6s and iPhone SE models at a Bengaluru facility operated by Wistron. Initially, the move aimed to reduce the impact of high import taxes on Chinese goods. As the US-China trade tensions escalated, Apple expanded its manufacturing presence in India to mitigate future risks.

India’s Growing Role in iPhone Production

As of April 2024, India accounts for approximately 14% of global iPhone production. Analysts expect this share to reach 25% by the end of 2025. Apple reportedly plans to double production output again to cover the over 60 million iPhones sold annually in the US by the end of 2026.

Tariffs on Chinese and Indian Imports

Imports from China now face tariffs of up to 145% under Trump’s revised trade policies. Even though smartphones have temporary exemptions, iPhones are still subject to a 20% tariff that existed before Trump’s return to office. Indian-made devices are also subject to a 26% tariff, although that measure has been paused for 90 days as New Delhi negotiates with Washington.

Ongoing Negotiations

US Vice President JD Vance, currently visiting India, stated that the two countries are making “very good progress” toward a trade agreement. The United States accounted for about 28% of Apple’s global iPhone shipments in 2024. Investors and analysts remain cautious about how Trump’s tariff plans might affect Apple’s upcoming earnings report, which is due next week.