Apple to shift most US iPhone production to India by 2026 to avoid China tariffs: reports
Apple is reportedly planning to shift most production of the iPhones it sells in the US to factories in India by the end of 2026 – as CEO Tim Cook’s firm looks to dodge massive tariffs on Chinese imports.
While the Cupertino, Calif.-based firm had already added more manufacturing capacity in India in recent years, it has accelerated those plans as US-China trade relations have soured. That’s despite the fact that manufacturing costs can be as much as 10% higher in India.
Apple is holding “urgent talks” with key manufacturing partners Foxconn and Tata to facilitate its India plans, Reuters reported. The two firms have three total factories in India and are planning to build two more.
The shift would mean that the number of iPhones made in India will roughly double to more than 80 million per year, Bloomberg reported, citing people familiar with the matter.
As of now, about 80% of the more than 60 million iPhones that Apple sells in the US each year are made in China.
Apple did not immediately return The Post’s request for comment.
President Trump has imposed sky-high 145% tariffs on goods made in China – and while the administration recently signaled it was open to deescalating the situation, a new trade deal has yet to solidify.
Trump also imposed a 26% rate for India and 46% rate for Vietnam, another key production hub for Apple. However, Trump paused those tariffs for 90 days earlier this month as his administration engaged in negotiations.
In early April, Apple lost more than $300 billion in market value in a single day as investor digested the impact Trump’s moves would have on its China-heavy manufacturing footprint.
Earlier this month, Reuters reported that Apple had airlifted 600 tons of iPhones – or about 1.5 million units – to the US from India in order to get ahead of tariffs and build up its domestic inventory.
