Apple plans on changing iPhone production to India

(MENAFN) Apple is planning to move the production of all iPhones destined for the U.S. market from China to India, amid rising trade tensions between the U.S. and China, according to the Financial Times. The move comes after U.S. President Donald Trump recently imposed steep tariffs on various imports, including up to 145% on Chinese goods. In response, China enacted its own countermeasures.

To help companies transition, U.S. authorities have created an exemption list, applying a lower 20% tariff to items like smartphones and other tech gadgets. The White House says this grace period is intended to give companies time to shift production to the U.S.

Citing sources, the FT reported on Friday that Apple aims to finalize the transfer of its iPhone assembly lines to India by the end of 2026, affecting over 60 million devices sold annually in the U.S. Apple had already been diversifying its production, with some operations moved to India and Vietnam, but China remains its primary manufacturing hub after nearly two decades of investment.

Despite the shift, many iPhone components still originate from China, according to the report. In late March, The Times of India reported that Apple sent five air shipments of iPhones and other devices from India to the U.S., anticipating Trump’s 10% reciprocal tariff on Indian imports that took effect April 5.

The relocation could lead to higher prices for U.S. consumers. For instance, the base model iPhone 16, launched last September at $799, could rise by 43% to $1,142 if Apple passes the increased costs on to buyers, according to Reuters, citing analysts at Rosenblatt Securities.

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