Apple is planning to relocate a substantial segment of its iPhone production to India, with the objective of producing the majority of iPhones sold in the United States at Indian facilities by the conclusion of 2026, as reported by Reuters. This expedited transition is part of Apple’s strategy to reduce the risks associated with increased tariffs in China, which remains its main manufacturing center. The company is currently engaged in urgent negotiations with contract manufacturers Foxconn and Tata to support this transition. Both Foxconn and Tata currently operate three factories in India and are looking to expand by constructing two more. Presently, Apple sells over 60 million iPhones each year in the U.S., with approximately 80% of these devices being manufactured in China. However, producing in India presents its own set of challenges, as costs are estimated to be 5-8% higher than in China, with some projections suggesting a 10% disparity. In response to the escalating tariffs, Apple has already ramped up its production in India, exporting around 600 tons of iPhones valued at $2 billion to the U.S. in March. These shipments represented a record for both Foxconn and Tata, with Foxconn alone accounting for $1.3 billion in iPhone exports.
