Apple Plans iPhone Shift From China To India Amid Tariff Pressures, Geopolitical Risks: Report

Apple Inc AAPL looks to import most of the iPhones it sells in the U.S. from India by the end of 2026.

The iPhone maker will need to double its annual iPhone output in India to over 80 million units, Bloomberg reported Friday, citing unnamed sources familiar with the matter.

Apple assembled over 40 million iPhones in India in fiscal 2025 ended March 2025. According to the report, It sold over 60 million iPhones annually in the U.S.

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Apple’s plans symbolize its pivot from China, which was triggered by the 2020 pandemic, which disrupted global supply chains. U.S. President Donald Trump’s tariff policies and geopolitical tensions with China have also prompted Apple to intensify that effort.

Apple assembled $22 billion worth of iPhones in India in the 12 months ended March, increasing production by nearly 60%. Apple now makes 20% of iPhones in India. Still, China remains its most significant production base.

Apple supplier Hon Hai Precision Industry HNHPF (operating as Foxconn Technology) assembled most of its India-made iPhones in Foxconn’s southern India factory.

BofA Securities analyst Wamsi Mohan noted that iPhone costs can increase by 25% if Apple migrates the production base to the U.S. purely due to higher labor costs in the country. In addition, if Apple has to pay reciprocal tariffs to import sub-assemblies into the U.S., he noted that the total cost of an iPhone would increase by more than 90%.

Mohan also highlighted that moving the final assembly to the US, including the entire iPhone supply chain, would likely take many years.

Apple reportedly transported five planeloads of iPhones and other products from manufacturing centers in India and China to the U.S. in late Match within 72 hours to avoid Trump’s new 10% reciprocal tariff on imports, which took effect on April 5.

The tariff structure poses a pricing challenge for Apple, with Indian exports facing a 26% tariff, while Chinese goods are now subject to a significantly higher 54% rate.

Apple led global smartphone sales with a 19% share in the first quarter, boosted by the iPhone 16e and emerging market growth.

Apple also collaborated with Chinese tech giants like Alibaba Group Holding BABA and Baidu Inc BIDU to bring AI features to iPhones in China to regain lost market share.

AAPL Price Action: Apple stock is down 0.29% to $207.77 at the last check on Friday.

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