By the end of the year, Apple Inc. intends to buy the majority of the iPhones it sells in the US from India, accelerating a move away from China to lessen the impact of tariffs and political conflicts.
According to people with knowledge of the situation, Apple will need to almost double its iPhone production in India while not being identified when discussing domestic plans. In the US, Apple sells more than 60 million handsets annually.
The strategy is the most recent indication that Apple and its suppliers are moving quickly to India from China, a process it started when terrible Covid lockdowns severely reduced output at its largest plant. Trump’s introduction of tariffs and Beijing-Washington tensions are causing Apple to bolster that work.
Apple in India didn’t listen to a request for comment right away. Apple’s strategy for sourcing all of its US-sold smartphones from India by 2026 was previously reported by The Financial Times. Apple’s strategy to significantly prioritize handsets from the India supply chain for its US consumers was previously covered by Bloomberg News.
In India, the Cupertino, California-based business produced US$ 22 billion ( RM$ 96.35 billion ) worth of iPhones in the 12 months that ended in March, increasing production by nearly 60 % over the prior year, according to a report released this month from Bloomberg. In South Asia, Apple currently produces one in five of its iPhones, while China continues to be its biggest producer by much.
The manufacturer in southern India where Foxconn Technology Group manufactures the majority of its smartphones is located. A key supplier is also TATA Group’s devices manufacturing division, which acquired Wistron Corp.’s local business and manages Pegatron Corp.’s operations in India.
Apple exported 1.5 trillion rupees ( RM 76.68 billion or US$ 17.5 billion ) of iPhones from the region in the fiscal year through March 2025, according to the country’s technology minister on April 8.
After Trump announced his plans for the so-called “reciprocal” levies in February, iPhone sales from India to the US grew faster. Regular India output and exports increased by Apple all through the fiscal year to March.
Electronics products, including phones and computers, were exempt from the Trump administration’s mutual taxes earlier this month. Although the break doesn’t seem to expand to Trump’s separate 20 % duty on China, which was used to force Beijing to crack down on fentanyl, that’s good news for businesses like Apple.
This also means that Indian-made smartphones didn’t currently be subject to duties. Trump’s combined taxes on China continue at 145 %, excluding the exceptions made on April 11, and this will likely force businesses like Apple to shift their supply chain.
Apple then manufactures all of its iPhone models in India, including the more pricey metal Pro models. The country’s most popular nation’s manufacturing achievement is also aided by state subsidies tied to Prime Minister Narendra Modi’s plan to make the country a hub for manufacturing.   – Bloomberg