Apple’s China exodus: All US iPhones to be made in India by 2025

Apple will more and more prioritize iPhones from the India provide chain for its US prospects.

Apple is planning to shift the meeting of all iPhones offered in the United States to India by subsequent 12 months, a Financial Times report mentioned on Friday- a daring transfer fueled by President Donald Trump’s renewed tariff threats on Chinese imports.
The plan is a part of a broader technique to diversify Apple’s provide chain away from China, which nonetheless dominates many of the tech large’s manufacturing infrastructure. If profitable, this shift would see over 60 million iPhones produced yearly in India by 2026 – doubling present output, the FT report mentioned.
Why it issues
The US is Apple’s most necessary market. In 2024, it accounted for roughly 28% of the corporate’s world iPhone shipments, in accordance to IDC. Moving the manufacturing of US-bound iPhones out of China not solely helps Apple dodge steep tariffs but in addition reduces long-term geopolitical threat tied to US-China relations.
More instantly, the pivot is a response to Trump’s “reciprocal tariff” agenda. His administration slapped China with tariffs that when hit as excessive as 145% and nonetheless embody a 20% obligation on smartphones. Though some electronics like telephones have been lately exempted, that aid seems momentary. Trump has additionally floated new levies geared toward semiconductor-heavy merchandise, probably impacting Apple’s complete machine line.
Zoom in
In the fiscal 12 months ending March 2025, Apple assembled $22 billion price of iPhones in India – a 60% year-over-year improve, in accordance to a Bloomberg report. About 20% of the world’s iPhones now come from India, a determine poised to develop quickly.
Most of this manufacturing takes place at Foxconn’s sprawling campus in Tamil Nadu, together with Tata Electronics, which acquired Wistron’s operations and now additionally oversees Pegatron’s manufacturing. This marks a turning level for Apple’s manufacturing technique, which had remained largely centered in China for almost 20 years.
India’s authorities, below Prime Minister Narendra Modi, helps pave the best way. Apple is tapping into production-linked incentives and should profit from new $2.7 billion subsidy plans geared toward boosting electronics manufacturing and semiconductors.
The huge image
Apple’s urgency stems from a commerce shock in early 2024, when Trump’s tariffs knocked $700 billion off the corporate’s market worth. In response, Apple started exporting Indian-assembled iPhones to the US – a transfer designed to beat the tariff clock, the FT report mentioned.
Still, challenges stay. While meeting is the ultimate stage in the iPhone manufacturing course of, Apple continues to be closely reliant on Chinese suppliers for parts, the FT report added. Experts say shifting your entire provide chain might take years. Bloomberg Intelligence estimates that shifting simply 10% of Apple’s manufacturing out of China might take up to eight years.
The shift additionally counters Trump’s personal name for corporations to “bring jobs home.” Analysts say the US lacks the labor drive and infrastructure to help large-scale iPhone meeting, making India a extra viable different.
What they’re saying
“We believe this is going to be an important move for Apple to be able to maintain its growth and momentum,” Daniel Newman, CEO of the Futurum Group, advised the Financial Times. “We are seeing in real time how a company with these resources is moving at relative light speed to address the tariff risk.”
Apple declined to remark for the FT report.
Between the traces
The iPhone maker’s pivot additionally aligns with broader provide chain reshuffling throughout the tech trade. The pandemic uncovered the fragility of China-dependent manufacturing, particularly throughout Covid-era lockdowns at Apple’s largest Chinese plant. Now, geopolitical threat is compounding that concern.
To get forward of potential provide disruptions, Apple shipped 57.9 million iPhones in Q1 2025 — a ten% leap from the identical interval final 12 months — because it raced to construct stock in the US earlier than tariffs might take impact, IDC reported.
Consumers additionally observed: Apple Stores noticed a spike in demand this spring, as buyers rushed to purchase iPhones earlier than potential worth hikes kicked in.
What’s subsequent
Apple is about to report earnings subsequent week. Analysts anticipate the corporate to area powerful questions in regards to the monetary influence of tariffs, India’s function in the corporate’s long-term technique, and whether or not manufacturing targets for 2025 are practical.
While Apple’s transition gained’t absolutely sever its ties with China, the message is evident: The iPhone’s future – not less than in the US – will more and more be ‘Made in India’.
(With inputs from businesses)