Apple to shift iPhone production to India — FT
Apple plans to move the assembly of all US-bound iPhones from China to India in light of the escalating trade tensions between Washington and Beijing, the Financial Times has reported.
Earlier this month, US President Donald Trump imposed sweeping tariffs on numerous countries, with Chinese goods facing duties as high as 145%. He has argued that the measures will help revive domestic manufacturing and redress the skewed trade balance. Beijing responded by imposing its own tariffs and export restrictions.
The US Customs and Border Protection agency went on to publish a list of exempted articles, which are subject only to a separate 20% rate and include computers, laptops, smartphones and other tech devices and components. Commenting on the decision, the White House stated that the exemptions are meant to give companies enough time to localize their production on US soil.
On Friday, the FT reported, citing sources familiar with the matter, that Apple hopes to complete the shift of its assembly lines to India by the end of 2026, affecting more than 60 million iPhones sold annually in the US.
According to the publication, the tech giant has had to speed up its pre-existing diversification strategy amid the intensifying trade war, and now aims to double the iPhone output in India.
While the company has already moved some of its assembly lines to India and Vietnam, China still remains the leading production center for iPhones globally. Apple has invested heavily there over almost two decades.
A lot of the constituent components that are put together during assembly are sourced from China, the FT noted.
Earlier this month, the Times of India, citing unnamed senior officials, alleged that Apple had transported five planeloads of iPhones and other devices from India to the US within a span of three days in late March. The shipment was reportedly conducted in anticipation of a 10% reciprocal tariff on Indian goods introduced by Trump, which took effect on April 5.
The cheapest iPhone 16 model was launched in the US at $799 last September. This could now rise by 43% to $1,142 should Apple pass the burden on to consumers, Reuters estimated, citing calculations based on projections from analysts at Rosenblatt Securities.
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