Apple aims to source all US iPhones from India in pivot away from China

Apple plans to shift the assembly of all iPhones sold in the U.S. to India as early as next year, pivoting away from China to avoid steep tariffs, the Financial Times reported, citing people familiar with the matter.

The company did not immediately respond to a Reuters request for comment.

U.S. President Donald Trump’s trade war is pushing tech companies to diversify their supply chains. Apple is positioning India to play a key role in its manufacturing strategy, even though its suppliers in the country currently produce only a small share of iPhones sold globally.

Analysts had previously warned that consumer goods such as iPhones could be among the hardest hit by Trump’s broad tariffs and said U.S. iPhone prices might rise sharply due to Apple’s heavy dependence on Chinese imports.

Higher prices could squeeze Apple’s margins and give Android smartphone makers a competitive edge.

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Earlier this month, Washington granted tariff exclusions for smartphones, computers and other electronics mostly imported from China, offering some relief to tech firms such as Apple.

The company sells more than 220 million iPhones a year worldwide, with Counterpoint Research estimating a fifth of the total imports of the device to the United States coming from India, and the rest from China.

Foxconn and Tata, Apple’s main suppliers in India, operate three factories, with two more under construction.

In March, Foxconn and Tata shipped nearly $2 billion worth of iPhones from India to the U.S., a record high, according to customs data.

Foxconn’s plant in Chennai now operates on Sundays, typically a day off, two sources told Reuters. The plant produced 20 million iPhones last year, including the latest iPhone 15 and iPhone 16 models.