Apple is planning to relocate all iPhone assembly for the U.S. market from China to India by the end of 2026. This decision is a strategic move in response to increasing U.S. tariffs on Chinese goods, which have reached up to 145%. By shifting production to India, Apple aims to mitigate the financial impact and maintain its competitive edge.
To facilitate this transition, Apple is expanding its manufacturing capacity in India by partnering with local companies like Tata Electronics and Foxconn. This collaboration is expected to significantly increase the country's output and reduce dependency on Chinese manufacturing. According to ft.com, the push to relocate production is part of Apple's broader strategy to diversify its supply chain and lessen exposure to geopolitical tensions that could disrupt supply chains.
Alongside this production shift, Apple is carefully monitoring trade negotiations as India currently faces a 26% tariff on exports to the U.S. However, this tariff is temporarily on hold pending the results of ongoing trade discussions. This strategic adjustment underscores Apple's proactive approach to navigating complex global trade dynamics by expanding its manufacturing footprint beyond China.