• Apple aims to shift assembly of all US iPhones to India by 2026.
• Current production in India is expected to increase from 40 million to 70-80 million units annually.
• The move is largely driven by US-China trade tensions and tariffs imposed by former President Trump.
• Apple is collaborating with Foxconn and Tata to facilitate this transition.
• India's electronics sector is expected to strengthen as Apple diversifies its supply chain.

Apple plans to shift the assembly of all iPhones sold in the United States to India by the end of 2026, a decision influenced by the ongoing trade tensions and tariffs imposed by the US. This shift, which has been discussed with suppliers Foxconn and Tata, is part of a larger strategy to reduce Apple's reliance on China amid increasing geopolitical risks, according to Indiatimes, Channel News Asia, and Reuters.

The company's production in India is expected to rise from 40-43 million iPhones annually to 70-80 million by late 2026, potentially making India the primary supplier for the US market. Currently, approximately 80% of iPhones sold in the US are manufactured in China, making this transition crucial for Apple to mitigate the financial impacts of tariffs, as detailed in reports from Al Jazeera and Indiatimes.

Apple's pivot aligns with the Indian government's aim to establish the country as a crucial manufacturing hub for electronics. To facilitate this transition, the Indian government has removed some import taxes on components, allowing companies like Apple to operate more competitively. However, production costs in India currently remain 5-10% higher than in China, posing challenges, as noted by Reuters and Indiatimes.

Despite these challenges, Apple has already made significant strides in production, recently shipping $2 billion worth of iPhones from India to the US, marking a record for its suppliers. This increase in production capacity will underpin Apple's strategy to reduce its dependence on Chinese manufacturing and enhance its operational resilience against tariffs, as indicated by reports from Channel News Asia and Al Jazeera.

The recent announcements highlight Apple’s strategic shift as it seeks to navigate the complexities of global supply chains influenced by political factors. Moving forward, the company's established partnerships with Foxconn and Tata are critical for realizing these manufacturing goals, paving the way for a significant expansion of India's role in the global tech supply chain, per the insights from Indiatimes and Channel News Asia.