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Apple (AAPL) is reportedly preparing to shift all production for U.S.-sold iPhones from China to India by the end of 2026, according to The Financial Times — a major acceleration of the company’s supply chain diversification strategy that comes amid trade war and tariff concerns.
That goal would mean Apple would have to roughly double its annual iPhone output in India to more than 80 million units. The company reportedly sells about 60 million phones in the U.S. per year.
President Donald Trump’s “Liberation Day” tariff announcements wiped $700 billion from Apple’s market cap — the company sources its components from all over the world, with 90% of its phones believed to be assembled in China. While Trump has paused most of his reciprocal tariffs, a 145% levy on China remains in place, though the president has signaled a willingness to reduce that number.
Apple has spent decades refining and perfecting its production line in China; the company manufactures the majority of its iPhones via third parties such as Foxconn (HNHPF).
In recent years, Apple has been building its capacity in India, also via third parties — namely Foxconn and Tata Electronics. The Silicon Valley giant now makes about one in five of its iPhones in India and has increased its production in the country by nearly 60% compared with the previous year. Foxconn and Tata are reportedly building plants to increase production capacity in Southern India, Bloomberg previously reported.
Daniel Newman, chief executive at the Futurum Group research firm, told the Financial Times, “We believe this is going to be an important move for Apple to be able to maintain its growth and momentum. ... We are seeing in real time how a company with these resources is moving at relative light speed to address the tariff risk.”
The White House has insisted that the Cupertino, California-based company will return its manufacturing to the U.S.
Press Secretary Karoline Leavitt told reporters that Apple’s announcement that it would spend $500 billion in the U.S. over the next four years showed a U.S.-made iPhone was possible — but the numbers breaking down potential costs show that it isn’t.
The iPhone maker is set to report first-quarter earnings next week.