Increasing tariffs (sometimes exceeding 100%) on Chinese-made electronics have made production in China less profitable for Apple. Shifting assembly to India helps Apple avoid these tariffs that otherwise would have been imposed on iPhones imported to the U.S.
Apple has long sought to reduce risks stemming from overreliance on China, as seen during the COVID-19 pandemic and subsequent disruptions. Indian government policies and the “Make in India” initiative provide tax breaks, eased import duties on components, and support for high-tech manufacturing, all of which make India an appealing alternative.
India still relies heavily on imports of essential components (such as semiconductors) from China. Major suppliers like Foxconn and Tata continue to import parts for final assembly.
Experts warn that India must double its annual iPhone output to fully replace Chinese-made devices for the U.S. market, though Apple is making rapid progress.
Apple aims to assemble all iPhones destined for the American market in India by the end of 2026, amounting to more than 60 million units annually. New plants, technological upgrades, and workforce scaling are underway to hit this ambitious goal.