Apple Accelerates iPhone Production Shift to India Amid China's Pushback

Apple is fast-tracking its efforts to move iPhone production to India after U.S. President Donald Trump announced steep tariffs during his inauguration. However, China appears to be trying to obstruct the transition.

According to Financial Times, Apple plans to produce all iPhones sold in the United States from India by the end of 2026. This move highlights Apple's determination to reduce its manufacturing dependence on China.

Based on International Data Corporation data, the U.S. accounted for about 28% of the 232.1 million iPhone units shipped globally in 2024. To meet that demand, Apple needs to manufacture over 60 million iPhones annually in India.

Achieving this target requires Apple to double its current production capacity in India, where it partners with Tata Electronics and Foxconn in developing manufacturing facilities.

The push to scale up Indian production gained momentum after Trump imposed tariffs as high as 125% on imports from China. Although a 90-day suspension on the new tariffs was announced recently, trade tensions continue to loom.

Apple has been aggressively expanding its manufacturing footprint in India. According to Reuters, since March, the company has shipped approximately 600 tons of iPhones to the U.S. via six cargo flights.

To support these shipments, Apple collaborated with Indian authorities to create a "green corridor" at Chennai Airport, cutting customs processing time from 30 hours to just 6 hours.

Furthermore, Apple has extended the operating hours of Foxconn’s major Indian factory to include Sundays, boosting production output and emphasizing India's growing importance in Apple's diversification strategy.

Meanwhile, Chinese authorities are reportedly hindering Apple's efforts by delaying or blocking shipments of manufacturing equipment destined for India without providing clear reasons, The Information reported.

Export approval times for equipment from China to India have ballooned from two weeks to up to four months, significantly slowing Apple's transition.

In one instance, China denied export permits for a machine crucial to the trial production of the iPhone 17, forcing one of Apple’s suppliers to set up a shadow company in Southeast Asia to circumvent the restrictions.

Currently, about 20% of Apple's iPhone production is based in India. Nevertheless, Apple aims to eventually shift around 50% of its iPhone manufacturing out of China in the long term.

This major shift represents a historic move for Apple, which for nearly two decades relied heavily on China as its manufacturing base and a key driver of its growth into a multi-trillion-dollar company.