Apple could shift all US-bound iPhone production to India

Apple is reportedly planning a major restructuring of its supply chain, which could see the manufacturing of iPhones bound for the US shift from China to India. The ambitious plan targets nearly 60 million units annually. 

According to The Guardian, Apple's manufacturing suppliers in India, Tata and Foxconn, accounted for phones worth $2 billion shipped to the US in March 2025. The company also ferried 600 tons of iPhones (1.5 million units) to the US, avoiding tariff-related costs. 

A report from Bloomberg said Apple assembled $22 billion worth of iPhones in FY 2024-25, a 60% increase over the previous year. Apple now makes 20% of all its iPhones in the country.   

A source close to The Financial Times said the move wasn't "just to avoid tariffs but also to assess whether Indian manufacturing could meet sudden surges in demand. The trial was viewed positively within the company, and now, Apple aims to fulfill all US iPhone demand from its Indian facilities." 

While the current US-China trade relations play a big part, Apple has been looking to diversify its supply chains since COVID lockdowns hurt the company's iPhone supply. The majority of the supply comes from Foxconn's factories in southern India. Tata Group is also a major player. 

India's technology minister, Ashwini Vaishnaw, told reporters that iPhones valued at $17.5 billion were exported from the country with an overall production of $22 billion in FY 2024-25.  

Apple's shares fell 23% since the announcement of US tariffs, wiping out nearly $770 billion in market value. The majority of its supply chain is still in China.