Apple plans to relocate its US-sold iPhones’ source from China to India, and they are planning this as early as next year, as reported in the Financial Times. This decision comes amid the escalation of trade tension between China and the USA due to the tariffs laid down by US President Donald Trump on Chinese goods. Apple assembles approximately 90% of its iPhones in China, and thus the company wants to diversify its sourcing and production.
China has played a very crucial role in Apple’s manufacturing journey, as it accounts for around 80% of the company’s production along with 40% of its suppliers based there. Whereas in India, Apple has produced iPhones worth $22 billion in FY25, a 60% hike from last year. The Foxconn’s factories set up in Tamil Nadu and Karnataka have made it possible, and currently India accounts for 10-15% of the global iPhone assembly.
This decision of Apple shifting its source from China to India will also help the company, as the tariffs on India are 26%, whereas for China the tariff rates are higher. So, it will surely help Apple as they can save a lot of money. According to the Economic Times, Foxconn is also planning to expand its production unit, as the company is reportedly eyeing 300 acres of land in Greater Noida, Uttar Pradesh. It also aligns with the PM’s vision of making India a global manufacturing hub.