As Apple tackles President Donald Trump’s tariff war with China, it plans to move to the Indian parliament of most IPHONE sold in the US by the end of 2026.
The tech giant produces it in China. 80% of the 60 million iPhones sold in the US, this is an important step that will help reduce some of the costs they face amid rising tariffs in China.
The Financial Times first reported Apple’s plans on Friday.
Apple, a company with over $3 trillion, is reportedly engaged in discussions with manufacturers working with India, including Foxconn and Tata Group.
The tech giant has already expanded India’s production to combat the tariffs imposed during the first Trump administration. According to Reuters, the Silicon Valley-based tech giant shipped $2 billion worth of iPhones in March, accounting for around 600 tonnes of cargo from India to the US.
India’s Prime Minister Narendra Modi is promoting the country as a global smartphone manufacturing hub. Earlier this year, the country removed the import tax on some components for the production of mobile phones. This is driving companies like Apple.
“When you’re charging import taxes on brokerage goods, you’re not actually competitive against people who aren’t competitive. Their aim is to be as competitive as being a major manufacturing hub,” Babakhafej, CEO of Hafej Capital, an international consulting firm, told Al Jazeera.
According to the Bloomberg Report, Apple has assembled around $222 billion worth of iPhones in India for the 12 months to end in March 2025. As it grows, there are only 20% of the world’s iPhones made in India.
Obstacles
Apple will take the production change. According to a Reuters report citing an unknown source, Indian manufactured iPhones are 5-8% more expensive than China.
“India helps, but it’s not moving its needle on China’s dependence on apples. It will take years for this move as apples are caught up in a tariff storm,” Wedbush Securities analyst Dan Ives told Al Jazeera.
Earlier this week, technology outlet information reported that Chinese authorities had created obstacles for Apple suppliers to move operations from China to India. They either delayed shipments or blocked shipments of equipment without explanation. In some cases, Foxconn was denied an export application, with others delayed by up to four months.
“When it comes to the production of Core iPhones, it takes years to move important pieces from China to India,” Ives adds, referring to the components of mobile phones that are made in China, shipped to India and assembled into final products.
Ives also said plans for Apple to move US mobile phones entirely to India could cost the company between $30 billion and $400 billion.
There are also concerns whether India’s infrastructure can handle the surge in production.
“They have a ton of infrastructure issues in terms of traffic and mobility, and all of these different variables that make the cost of production longer will ultimately cost more money for the company,” Hafezi added.
“We need a safe, continuous, productive infrastructure to do our best we can and be competitive worldwide,” he continued.
Apple’s move is as the Trump administration shows its willingness to ease trade tensions between the US and China amid concerns about economic fallout from the tariff war.
On Friday, Trump claimed he spoke to Chinese President Xi Jinping, but did not say the last time the two leaders spoke. In an interview with Time magazine earlier this week, Trump said his administration was talking to Beijing to sign a tariff contract. China has denied trade talks with the US.
However, trade talks with India are underway. Earlier this week, US Vice President JD Vance met with Modi in India. Meanwhile, Vance said that both countries made “good progress” within the trade agreements on both sides.
News of Apple’s transition to India comes ahead of Apple’s revenue report, scheduled to be released on Thursday.