Apple Moves IPhone Production For US Market To India, Not China

JAKARTA - Apple plans to produce most of the iPhones sold in the United States in India by the end of 2026. This project replaces China as the main production base. This was revealed according to a source who spoke to Reuters. This step was taken to avoid the potential high tariffs that the US government will impose on imported goods from China, which is currently the company's main production center.

The source revealed that Apple has held urgent talks with major contract manufacturers Foxconn and Tata to achieve this goal. Currently, about 80% of the more than 60 million iPhone units sold in the US are annually produced in China. However, production costs in India are still around 5-8% higher compared to China, with some cases reaching 10% more expensive.

Previously, Apple had accelerated production in India to address high tariffs implemented during President Donald Trump's administration, leading to the shipment of more than 600 tonnes of US$2 billion iPhones to the US in March. The shipment set a new record for both Apple, Tata and Foxconn contractors, with Foxconn alone delivering a $1.3 billion smartphone.

On the other hand, even though the Indian government has tried to make the country a smartphone production center, the import rate for mobile phone parts higher than other countries makes production in India still expensive. In April 2025, the US government imposed a 26% tariff on goods from India, much lower than the more than 100% tariff imposed on goods from China.

Foxconn and Tata, Apple's two main suppliers in India, currently own three factories in India, with two other factories under construction to expand production capacity. Apple hopes that with its production diversification to India, the company can reduce its dependence on China in meeting US market demand, especially amid trade tensions between the world's two largest economies.

The move also reflects Apple's efforts to adapt to changes in global trade conditions and to maintain its supply chain resilience amid the uncertainty posed by international trade disputes.