Apple plans to manufacture the majority of iPhones sold in the United States at factories in India by the end of 2026, aiming to mitigate the impact of potential higher tariffs in China, its primary manufacturing base, according to a source who spoke to Reuters.
The tech giant is conducting urgent talks with contract manufacturers Foxconn and Tata to expedite the shift, though neither Apple, Foxconn, nor Tata provided immediate comments.
Currently, about 80 percent of the over 60 million iPhones sold annually in the U.S. are made in China.
Although Prime Minister Narendra Modi has promoted India as a smartphone production hub, higher import duties on mobile phone parts make Indian manufacturing 5-8 percent more expensive than in China, with costs rising up to 10 percent in some cases.
Apple has already increased its India-based production to counter U.S. tariffs, shipping 600 tons of iPhones valued at US$2 billion to the U.S. in March, setting a record for contractors Tata and Foxconn, the latter contributing $1.3 billion alone.
In April, the U.S. imposed a 26 percent duty on imports from India, significantly lower than the over 100 percent duty levied on Chinese imports. Most duties have since been paused for three months, except for China.
While the Trump administration signals a willingness to de-escalate the trade tensions, Apple continues diversifying its manufacturing footprint, with Foxconn and Tata operating three factories in India and two more under construction.
Source: Swifteradio.com
