Apple Could Relocate Entire U.S. iPhone Assembly to India by Next Year: Report
New Delhi(The Uttam Hindu): Apple is reportedly planning to relocate the entire assembly of iPhones destined for the U.S. market to India as early as next year, signaling a significant shift in its global manufacturing strategy. The move aims to reduce Apple's dependence on China amid ongoing geopolitical and trade tensions, according to a report by the Financial Times. However, the final decision will depend on how swiftly India can expand its supply chain capabilities and the outcome of U.S.-China trade negotiations.
The report also noted that former U.S. President Donald Trump has been urging Apple to diversify away from China, given the strained trade relations between the two countries. Trump recently acknowledged that tariff-related discussions with China are still ongoing. In the meantime, Apple’s manufacturing partners in India are already ramping up production. Foxconn’s new facility in Bengaluru is expected to become operational this month and could eventually produce up to 20 million iPhones annually at full capacity.
India has already become a significant export hub for Apple. Approximately 70% of Apple’s iPhone exports are handled by its Indian supply chain, with Tamil Nadu-based Foxconn alone contributing nearly 50% of outbound shipments. Exports from this factory saw a year-on-year increase of over 40%. Over the past year, Apple has assembled iPhones worth $22 billion in India, marking a record high for the company’s local operations. India now accounts for nearly 20% of Apple’s total global iPhone output, reflecting the country’s growing role in Apple’s supply ecosystem.
On the consumer front, Apple’s presence in the Indian market is also strengthening. In the first quarter of 2025, Apple shipped more than 3 million iPhones in India — its highest ever in the region. This surge has been fueled by attractive financing options, cashback deals, and discounts offered through online platforms. Industry analysts predict Apple’s growth in India will continue at a steady pace, with expectations of 10-15% annual growth this year. With both production and demand rising rapidly, India is positioning itself as a critical component of Apple’s long-term global strategy, experts observed.