New Delhi – April 25, 2025 – Apple is reportedly accelerating its efforts to diversify its manufacturing footprint away from China, with ambitious plans now targeting India to assemble all iPhones destined for the United States market by as early as 2026. This strategic pivot underscores the growing impact of geopolitical tensions and trade policies on global supply chains, particularly as companies navigate the complexities of US-China relations.
Targeting the US Market: Scale of the Ambition
According to recent reports, the tech giant aims to produce over 60 million iPhones annually in India to meet the demand of the U.S. market. This target would necessitate a significant ramp-up, effectively doubling Apple’s current iPhone output in India. While China presently accounts for the vast majority of global iPhone production, Apple has been gradually increasing its manufacturing presence in India over the past few years. Current estimates suggest India now contributes around 20% to 25% of the world’s total iPhone production.
Driving Forces: Trade Tensions and Diversification
The primary catalyst for this accelerated shift is the escalating trade friction between the United States and China. The imposition of tariffs and the uncertainty surrounding future trade policies have made manufacturing in China increasingly costly and strategically risky for products intended for the U.S. market. By moving assembly to India, Apple seeks to mitigate these tariff risks and build a more resilient supply chain less vulnerable to geopolitical fluctuations.
India’s Advantage: PLI Schemes and Ecosystem Growth
India has actively courted global electronics manufacturers through initiatives like the Production Linked Incentive (PLI) scheme, which offers financial incentives on incremental sales of goods manufactured domestically. This policy has been instrumental in attracting major Apple contract manufacturers, including Foxconn, Tata Electronics (which recently increased its stake in a Pegatron facility in India and acquired Wistron’s India operations), and Pegatron, to expand their operations within the country. These partners are currently at the forefront of increasing iPhone assembly capacity in India.
Navigating the Hurdles: Supply Chain and Quality
While India is rapidly emerging as a crucial manufacturing hub for Apple, challenges remain. Establishing a comprehensive local supply chain for all components at the required scale and quality standards is a significant undertaking. Many critical components are still sourced primarily from China. Reports have also noted hurdles related to quality control in initial sub-assembly efforts and the need to train and scale the workforce to meet demanding production timelines.
A New Chapter in Global Manufacturing
Despite these challenges, Apple’s commitment to India appears strong. Beyond increasing assembly, the company is reportedly working to expand its network of Indian suppliers for various components. It is also growing its retail presence across the country, recognizing India as both a vital manufacturing base and a significant growth market for sales. The potential shift of all U.S.-bound iPhone assembly to India by 2026 represents a major strategic realignment for Apple and a significant boost for India’s ambitions to become a global manufacturing powerhouse in the electronics sector. It signals a potential reshaping of the global tech manufacturing landscape driven by economic incentives and the imperative for supply chain resilience in an increasingly uncertain world.
