Apple to Shift All US-Bound iPhone Assembly to India by 2026

All iPhones meant for the US market are likely to be assembled in India by next year, as per a report by Financial Times. This move could mark a major shift in Apple’s global supply chain, influenced by the US’s reciprocal tariff system. Apple aims to produce 80 million iPhones annually in India to meet the projected US demand of 60 million units by 2026.

The decision follows a turbulent period when Apple lost nearly $700 billion in market value due to tariffs under former US President Donald Trump. Although the US later exempted electronics like smartphones from those tariffs, a 20% tariff still applies to China, pushing Apple to further diversify its manufacturing base.

India has steadily become central to Apple’s production strategy. The company began assembling iPhones like the iPhone 15 and later the iPhone 16 Pro series in India. Apple currently operates three iPhone assembly units in the country, two managed by Tata Group and one by Foxconn. The company also works with local suppliers such as Sunwoda, Foxlink, and Aequs.

India’s growing role in Apple’s supply chain is backed by the government’s Production-Linked Incentive (PLI) scheme. Meanwhile, local sourcing of Apple has grown to 20% for new models as compared to 5-8% in 2020 whereas iPhones worth ₹1.5 trillion (around $17.4 billion) were exported in the fiscal year ending March 2025.

Source: Live Mint