Apple could soon move the entire assembly of iPhones destined for the United States market to India as early as next year, according to a report from the Financial Times. The potential shift would represent a significant change in Apple’s manufacturing strategy as it looks to reduce its reliance on China.

The final decision is expected to hinge on how quickly India can scale up its supply chain and the outcome of ongoing trade negotiations between the US and China.

Trump urges shift from China amid trade tensions

US President Donald Trump has reportedly been urging Apple to relocate production out of China, citing continued trade friction between the two countries. He recently confirmed that discussions over tariffs are still in progress.

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Meanwhile, Apple’s Indian manufacturing partners are accelerating production. Foxconn’s new facility in Bengaluru is scheduled to become operational this month and may eventually produce up to 20 million iPhones annually.

Foxconn leads India’s iPhone export surge

Apple’s iPhone exports from India have seen a sharp rise, with Tamil Nadu-based Foxconn contributing close to half of the overseas shipments. Foxconn’s exports alone jumped over 40 percent compared to the same period last year.

In total, iPhones worth $22 billion were assembled in India over the past year, setting a new record for the tech company. India now accounts for nearly 20 percent of Apple’s global iPhone production.

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Growing demand in the Indian market supports shift

The Indian market is also playing a growing role in Apple’s strategy. In the first quarter of 2025, more than 3 million iPhones were shipped domestically — a record div for the company in India.

This surge has been supported by various affordability schemes, including no-cost EMI plans, cashback deals, and discounts through online platforms. Industry analysts predict Apple will see a steady growth rate of 10-15 per cent in India throughout the year.

“With both production capacity and local demand on the rise, India is fast becoming a critical part of Apple’s global operations,” said industry experts.

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