Apple plans to shift the assembly of all iPhones sold in the United States until next year, a Financial Times report on Friday stated- a adventurous step by President Donald Trump’s renewed tariff hazards.
The scheme is part of a comprehensive strategy to diversify the Apple’s supply chain away from China, which still dominates most of the manufacturing infrastructure of technical giants. If successful, this change will be produced by more than 60 million iPhones per year in India by 2026 – doubling the current production, the FT report states.
why it matters
America is Apple’s most important market. In 2024, it was about 28% of the company’s global iPhone shipment according to the IDC. Advertising the production of US-Bound iPhones out of China not only helps in steep tariffs, but also reduces long-term geopolitical risk tied to the US-China relations.
More immediately, the pivot is a response to Trump’s “mutual tariff” agenda. His administration slapped China with tariffs, once a hit up to 145% and still includes 20% duty on smartphones. Although some electronics such as phones were recently exempted, this relief appears temporary. Trump has also swimmed the new levy for the purpose of semiconductor-thorough products, which potentially affects the entire device line of Apple.
zoom in
In the financial year ending March 2025, according to a report by Bloomberg, Apple assembled a $ 22 billion iPhone-60% year-to-year growth in India. About 20% of the world’s iPhones now come from India, which is ready to grow rapidly.
Most of this production occur in a vast campus of Foxconn in Tamil Nadu with Tata Electronics, which acquired the operation of the vistron and now also oversees the production of pagatron. This is a significant twist for Apple’s manufacturing strategy, which was largely concentrated in China for almost two decades.
Under Prime Minister Narendra Modi, the Government of India is helping to pave the way. Apple is exploiting the encouragement related to production and can benefit from $ 2.7 billion subsidy schemes aimed at promoting electronics manufacturing and semiconductor.
Big picture
Apple’s urgency stems from a business shock in early 2024, when Trump’s tariff knocked at $ 700 billion with the company’s market price. In response, Apple began exporting Indian -sock iPhones to the US – a step designed to defeat the tariff watch, FT reports have been stated in the FT report.
Nevertheless, challenges remain. The FT report states that the assembly is the final stage in the iPhone production process, Apple is still very much dependent on Chinese suppliers. Experts say it may take years to move the entire supply chain. Bloomberg Intelligence estimates that only 10% of Apple production from China may take up to eight years.
Shift also counted Trump’s call to “bring Jobs Home” for companies. Analysts say that there is a lack of labor force and infrastructure to support the iPhone assembly in the US on a large scale, which is a more viable option to India.
What are they saying
The CEO of the Financial Times told Financial Times, “We are confident that it’s an important step for Apple to be able to maintain its growth and speed.” “We are looking into real time how a company with these resources is moving at the relative light speed to address the tariff risk.”
Apple refused to comment for the FT report.
between the lines
The axis of the iPhone manufacturer also align with a broader supply chain reshuffle in the technical industry. The epidemic exposed the fragility of manufacturing depending on China, especially during the lockdown of the Covid-era at Apple’s largest Chinese plant. Now, geopolitical risk is reducing that concern.
The IDC reported that to overtake the possible supply disruption, Apple sent 57.9 million iPhones in Q1 2025 – a jump of 10% from the same period last year – as the tariff was run to make inventory in the US before the tariff was effective, the IDC said.
Consumers also saw: Apple Stores saw a spike in demand in this spring, as shopkeepers raced to buy iPhones before possible price increase.
What will happen next
Apple is ready to report earnings next week. Analysts hopefully meet the financial impact of the company Tariff, the difficult questions about India’s role in the company’s long -term strategy, and the production targets for 2025 are realistic.
While Apple’s infection will not leave its relations with China completely, the message is clear: the future of the iPhone – at least in the US – will be rapidly ‘created in India’.
(With input from agencies)
