Report: Apple moving US-bound iPhone production to India by 2026

The Financial Times reports that Apple will be sourcing all iPhones for the United States of America from India and move away from China.

File Photo: Apple iPhone 16 Pro Max

A result of an ongoing trade war?

The Cupertino-based tech giant is navigating the current potentially higher US tariffs on China and is taking action by shifting production of iPhones for the United States market to India. 

Apple sells over 60 million iPhones in the U.S. annually, with roughly 80 percent of them made in China.

The brand aims to make most iPhones sold in the US in factories based in India by 2026. The report's source claims that the brand is holding urgent talks with contract manufacturers such as Foxconn and Tata to achieve this goal.

Indian Prime Minister Narendra Modi has promoted India to the status of smartphone manufacturing hub in recent years. However, historically, importing mobile phone parts in India has been more expensive for companies. Manufacturing costs in India are typically 5 to 8 percent higher than in China, with the difference rising to as much as 10 percent in some cases.

According to a previous Reuters report, Apple has proactively stepped up production in India to beat the U.S. President Donald Trump's tariffs, shipping some 600 tons of iPhones estimated to be worth USD 2 billion to the United States in March. The shipments from India marked a record for both its contractors, Tata and Foxconn, with the latter alone accounting for smartphones worth USD 1.3 billion.

As Apple diversifies its manufacturing beyond China, it is positioning India for this important role. Foxconn and Tata, its two main suppliers there, have three factories in all, with two more being built.

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Source: Financial Times, Via Reuters, FoneArena