May 7, 2025
Most iPhones Sold in the U.S. Will Be Made in India by 2026 [Report]

Most iPhones Sold in the U.S. Will Be Made in India by 2026 [Report]

Posted April 25, 2025 at 2:15pm by iClarified
Apple is stepping up its push to move iPhone production out of China, with plans to build most iPhones sold in the U.S. in India by the end of 2026, according to reports from the Financial Times and Bloomberg. It's a major milestone in Apple's long-running effort to diversify its supply chain — and India is playing a bigger role than ever.

The company plans to ramp up iPhone production in India to over 80 million units a year, doubling the 40 million it expects to assemble by the end of March 2025. Apple sells around 60 million iPhones in the U.S. annually, with about 80% still made in China, according to Counterpoint Research. Rising production costs and new tariffs introduced this month are adding pressure for change.

Apple's move builds on years of investment in India aimed at diversifying its supply chain — a process that has been accelerated by Trump's tariff battles and China's COVID-19 lockdowns. The company is working closely with major suppliers like Foxconn, which operates a large plant in southern India, and Tata Electronics, which took over Wistron's local operations and now manages Pegatron's facilities too. Both are building new factories to keep up with demand. In the fiscal year ending March 2025, Apple's iPhone production in India hit $22 billion, a 60% increase from the year before, with exports totaling 1.5 trillion rupees ($17.5 billion), according to India's technology minister.


Thanks in part to government subsidies under Prime Minister Narendra Modi, Apple now assembles its full iPhone lineup locally — from entry-level models to the high-end titanium Pro variants. Today, India accounts for about one in five iPhones made worldwide, though China remains Apple's dominant production hub. Trump's recent move to exempt electronics from reciprocal tariffs provides some temporary relief, but his separate 20% duty on Chinese goods continues to push Apple toward India.

At the moment, iPhones assembled in India face no U.S. import duties, though a 26% tariff still applies to goods imported from India. Trade talks between the U.S. and India are advancing, with Vice President JD Vance noting "very good progress" toward a potential deal that could lower those costs. Investors are watching closely as Apple prepares to report earnings, looking for clues about how its supply chain is shifting in response to the changing landscape.

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Most iPhones Sold in the U.S. Will Be Made in India by 2026 [Report]


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