Cupertino, California (Agencies): Apple Inc. plans to relocate the assembly of all US-bound iPhones from China to India by the end of 2026, according to a report by the Financial Times. The move comes as trade tensions between Washington and Beijing escalate, with both nations imposing sweeping tariffs and restrictions on goods.
Earlier this month, US President Donald Trump introduced tariffs as high as 145% on Chinese imports, aiming to boost domestic manufacturing and address trade imbalances. In response, Beijing imposed its own retaliatory measures. Amid this backdrop, Apple has accelerated its diversification strategy, aiming to double iPhone production in India.
The shift is expected to impact over 60 million iPhones sold annually in the US. While Apple has already established assembly lines in India and Vietnam, China remains the primary production hub for iPhones globally, with many components sourced from there.
The Times of India reported that Apple recently transported five planeloads of iPhones and other devices from India to the US in anticipation of a 10% reciprocal tariff on Indian goods, which took effect on April 5.
The cheapest iPhone 16 model, launched in the US at $799 last September, could see its price rise by 43% to $1,142 if Apple passes the tariff burden onto consumers, analysts at Rosenblatt Securities estimate.
Apple’s decision underscores the growing impact of geopolitical tensions on global supply chains, as companies navigate the challenges of localization and diversification.