Apple Plans to Shift iPhone Production for US Market from China to India

Apple is reportedly preparing to relocate its iPhone production facilities for the United States market from China to India. This move aims to mitigate the price surge caused by the steep tariffs imposed by US President Donald Trump on imports from China.

According to a report by the Financial Times, cited by Reuters on Friday (April 25, 2025), insiders revealed that Apple intends to move all its iPhone manufacturing operations out of China and into India by next year.

The shift will focus on producing iPhones destined for the US market, following Trump's decision to enforce a 145% reciprocal tariff on Chinese imports.

Earlier, in response to the tariff war, Apple had airlifted 600 tons of iPhones from its plants in China and India to the US.

Subsequently, Trump adjusted his policy, suspending high tariffs for countries other than China and instead imposing a 10% additional duty. The final decision on tariffs remains under negotiation for the next 90 days.

Over the past few years, Apple has gradually been diversifying its iPhone production outside of China, although China still dominates its supply chain, mainly through its partnership with Foxconn.

In India, Apple continues to collaborate with Foxconn and Tata Electronics to expand its production footprint.

Bloomberg reported that as of Q1 2025, roughly 20% of Apple's global iPhone output comes from India, with a remarkable 60% year-on-year growth.

According to Evercore ISI estimates from March 2025, 80% of Apple’s manufacturing capacity still resides in China, covering 90% of iPhones, 55% of Macs, and 80% of iPads.

Bloomberg Intelligence projects that it could take Apple up to eight years to shift just 10% of its production out of China.

In addition to India and China, Apple also operates production facilities in Vietnam, Malaysia, and Thailand. Vietnam accounts for around 20% of iPad production and 90% of Apple's wearable devices. Meanwhile, Malaysia and Thailand contribute modestly to Mac manufacturing. Key Apple components such as chips and display panels are also sourced from South Korea, Japan, Taiwan, and the United States.