Ketaan Ram Kataria
Patna: Apple Inc. plans to relocate the assembly of all iPhones destined for the U.S. market to India by the end of 2026, marking a significant shift in its global manufacturing strategy. This move is driven by escalating U.S.-China trade tensions and aims to mitigate risks associated with geopolitical friction and potential supply chain disruptions.
The U.S. market accounted for approximately 28% of Apple’s global iPhone shipments in 2024. By shifting production to India, Apple aims to circumvent the financial impact of aggressive tariffs on Chinese-manufactured goods, some of which have reached up to 145%.
The Indian government, led by Prime Minister Narendra Modi, has been working assiduously to encourage electronics production with production-linked incentives (PLI). The principal vendors of Apple—Foxconn, Tata Electronics, and Pegatron—have cumulatively garnered hefty subsidies under the PLI policy, making way for increased iPhone manufacturing in India.
In fiscal year 2024, Apple assembled approximately $14 billion worth of iPhones in India, representing about 14% of its global output. The company aims to increase this share to 25% by 2028.
This strategic pivot not only reduces Apple’s reliance on China but also positions India as a critical hub in its global supply chain. The move is expected to create significant employment opportunities and bolster India’s position in the global electronics manufacturing landscape.
Apple’s decision underscores the broader trend of companies diversifying their manufacturing bases amid geopolitical uncertainties, with India emerging as a key beneficiary of this shift.
