Apple could obtain complete supplies from its range of iPhones for the American market – around 60 million aircraft per year – assembly facilities in India by the end of 2026, according to a financial Times report.
The planned decision comes in the context of the Trump administration imposing prices against China up to 145%, although certain products such as mobile phones and computers have been exempt at the moment. Apple has long focused on its production of iPhone in China, which makes it vulnerable to any trade war between the two countries and to stimulate speculation that prices could mean price increases for the most sold product of the company.
By moving the assembly of third parties of American iPhones to India, Apple could avoid the most important cost pressure of a trade war, although India itself is also faced with new prices.
The company had already started to send iPhones manufactured in India, adding to its product reserves, before new prices become active.
A representative for Apple did not immediately respond to a request for comments.
Take a global perspective
Although it is not clear how long the trade war with China will continue, the change of Apple is part of a wider strategy that could include more manufacturing of American components, explains Angelo Zino, vice-president of CFRA research.
“Apple must think in the long term with manufacturing capacity,” said Zino. “We believe that Apple will seek to double its iPhone capacity in India over the next two to three years to help reduce future China-US tensions.”
That said, Zino expects to keep a great presence in China, because 15% of its sales will be in this country and the global capacities of iPhone manufacturing will always be based on Chinese manufacturing.
Although Apple would not fully move iPhone production in the United States, which would be prohibitive costs, he said, it could potentially increase the modem and processors designed internally with Taiwan Semiconductor in the United States.
“This is clearly where the value of the apple resides for the Trump administration, in our opinion, rather than assembling its devices,” said Zino.
Will Apple’s passage in India last?
Muzammil Hassan, head of management and monetization of the patent portfolio in India for when Ary Peak Research, noted that Apple’s passage to more manufacturing in India was already held before the promulgation of prices.
“I don’t think it’s a temporary decision,” said Hassan. “Foxconn trained thousands of employees in their factories at Tamil Nadu. In fact, there were reports that the iPhone 17 could be developed and manufactured exclusively in India.”
Although the movement of all American iPhone production in India can be daring, said Hassan, Apple does not pioneer with its manufacturing strategy. “I would say that Apple is late at the party. Samsung, Oppo, Vivo and Motorola, among others, already made their phones in India.”
In addition, Google can migrate the production of its pixel phone to India from Vietnam, he said.
