Apple Targets India For Majority Of US Iphone Supply By 2026

2025-04-25 04:11:59

(MENAFN- The Arabian Post)

Apple Inc. is set to shift the assembly of all iPhones destined for the US market to India by the end of 2026, marking a significant departure from its longstanding reliance on Chinese manufacturing. This strategic move aims to mitigate risks associated with escalating tariffs and geopolitical tensions between Washington and Beijing.

The United States, accounting for 28% of Apple's global iPhone shipments in 2024, remains the company's largest market. The decision to relocate production is driven by the financial impact of steep tariffs on Chinese-manufactured goods, which have reached up to 145%. These levies have prompted Apple to seek alternative manufacturing hubs to safeguard its supply chain and maintain profitability.

India has emerged as a pivotal player in Apple's diversification strategy. The company plans to double its iPhone production in the country, leveraging the capabilities of its key manufacturing partners, Foxconn and Tata Electronics. Foxconn, Apple's largest supplier, currently assembles approximately 67% of iPhones produced in India. Tata Electronics, following its acquisition of Wistron's manufacturing unit, has significantly ramped up its production capacity.

The Indian government's Production-Linked Incentive scheme has been instrumental in attracting Apple's investment. This initiative offers financial incentives to companies that boost domestic manufacturing and exports. As a result, Apple's iPhone production in India reached $14 billion in fiscal year 2024, with exports exceeding $10 billion. Between April and October 2024 alone, production hit $10 billion, with $7 billion worth of iPhones exported.

This expansion has also contributed to job creation, with Apple generating approximately 175,000 direct jobs in India over the past four years. Notably, over 72% of these positions are held by women, reflecting the company's commitment to inclusive employment practices.

See also Apple's India Manufacturing Surge: Foxconn to Double iPhone Output

Apple's shift to India is part of a broader trend among multinational corporations seeking to diversify their manufacturing bases. The move underscores India's growing prominence as a global manufacturing hub, particularly for high-value electronics. Analysts project that India could account for up to 25% of global iPhone production by 2025, a significant increase from the current 14%.

Despite this transition, Apple continues to rely on Chinese-made components for iPhone assembly, highlighting the complexity of its supply chain. The company is working to develop a more self-reliant manufacturing ecosystem in India, but this process will take time.

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