India to manufacture half of US iPhones by 2026
Apple plans to produce over 60 million iPhones annually in India by 2026, marking a strategic shift from China. The move aims to mitigate high tariffs and trade tensions, with Vietnam also playing a key role in manufacturing AirPods and Apple Watches.
During a recent interview, Apple CEO Tim Cook revealed that half of the iPhones sold in the US are manufactured in India. Cook mentioned that by the April-June quarter, India will be the primary source for iPhones sold in the US. He also noted that other Apple products like AirPods and Apple Watch are predominantly produced in Vietnam. The company is prioritizing India and Vietnam due to their lower tariffs compared to China, where tariffs are significantly higher. Imports from India and Vietnam incur only a 10% tax. This decision comes amid escalating trade tensions between the US and China.
India to have more than 60 million iPhones by 2026
Following Trump's reciprocal tariffs, Apple was compelled to lessen its reliance on China. Nonetheless, Cook asserted that the March quarter had a minimal effect on Apple since the company swiftly relocated its supply chains to India and Vietnam. By 2026, over 60 million iPhones will be produced annually in the country.
As reported by the Financial Times, Apple has been actively pursuing a strategy to relocate its supply chain from China to minimize reliance on the country. Should Apple move its assembly operations to India by the year's end, starting in 2026, over 60 million iPhones will be manufactured each year, which is twice the existing production capacity.
China still dominates iPhone manufacturing
China is currently dominating iPhone manufacturing. According to IDC, it accounted for around 28% of the company's global iPhone shipments in 2024. Shifting production of iPhones sold in the US market out of China will help the company avoid high tariffs.