In a major move to diversify its manufacturing footprint and reduce reliance on China, Apple is fast-tracking its strategy to assemble nearly every iPhone sold in the United States at Indian facilities by late 2026. According to reports, the tech giant is in confidential talks with its longtime manufacturing partner Foxconn, as well as new ally Tata Group, to shift around 60 million iPhones annually — representing about 80% of Apple’s U.S. iPhone sales volume.
The transition is not without its challenges. Manufacturing an iPhone in India currently costs around 5-10% more compared to production in China, due to higher logistics and labor training costs. However, escalating tariffs on Chinese imports have made alternatives increasingly attractive for Apple. To counter the premium, the company has taken strategic steps, including chartering cargo flights to expedite deliveries.
In March 2025, Apple reportedly chartered several flights that ferried 600 tons of iPhones — valued at approximately $2 billion — from India to the United States. This move allowed Apple to bypass China’s steep export duties, which can exceed 100%, while benefiting from a significantly lower 26% levy on Indian imports. This logistical strategy reflects Apple’s growing urgency to mitigate the financial risks posed by ongoing geopolitical tensions between the U.S. and China.
Currently, Apple has three operational factories in India, and two more are under construction. These plants are being developed with the support of Foxconn and Tata Electronics, with strong backing from the Indian government under its Production-Linked Incentive (PLI) scheme. The expansion marks one of Apple’s most aggressive bets outside of China and demonstrates CEO Tim Cook’s commitment to building a resilient, diversified supply chain.
Apple’s India push has been several years in the making. The company first began manufacturing lower-end iPhones in India in 2017, mainly for the domestic market. However, the strategy evolved rapidly following global disruptions like the COVID-19 pandemic and growing U.S.-China trade tensions. Recent data from Counterpoint Research shows that India now accounts for nearly 7% of global iPhone production, a figure poised to climb sharply with these latest initiatives.
Industry analysts suggest that moving a major chunk of production to India not only helps Apple manage tariff pressures but also taps into the country’s vast and increasingly skilled labor pool. Moreover, India’s growing importance as a consumer market for Apple adds another layer of strategic significance to this shift.
“Apple’s move reflects the tectonic changes happening in global supply chains,” said Neil Shah, Vice President of Research at Counterpoint. “They are de-risking their China exposure while creating a strong alternative hub in India.”
Despite the cost challenges, Apple’s Indian manufacturing facilities are ramping up their capabilities at a rapid pace. Foxconn’s new plant near Bengaluru and Tata’s expansion projects are expected to contribute significantly to the 2026 target. Reports also suggest that Apple is investing heavily in training programs and quality control measures to ensure Indian-assembled iPhones meet its stringent global standards.
Apple’s transition also mirrors a broader trend in the tech industry, where companies like Samsung and Google are increasingly looking at India and Southeast Asia to diversify their manufacturing bases.
As Apple continues its shift, the move is expected to boost India’s ambitions to become a global electronics manufacturing hub. Prime Minister Narendra Modi’s government has welcomed Apple’s expansion, viewing it as a validation of India’s growing importance in the global tech economy.
If successful, by the end of 2026, India could be producing nearly all iPhones destined for American consumers — a significant milestone that would have been unimaginable just a few years ago.
Sources:
- Bloomberg (April 2025)
- Counterpoint Research (April 2025)
- The Economic Times (April 2025)
