New Delhi: In a strategic shift driven by ongoing trade tensions between the US and China, Apple is reportedly planning to manufacture all iPhones sold in the United States within India by 2026. The move is aimed at reducing the tech giant’s reliance on China and mitigating risks from potential US tariffs on Chinese goods.
- A Major Diversification from China
The decision marks Apple’s most significant pivot away from China, where the company has spent years building an intricate and reliable supply chain. Shifting such a large volume of production to India will require Apple to drastically expand its local manufacturing capabilities in just over a year.
- Current Capacity and Export Footprint
Last fiscal year, Apple produced iPhones worth $22 billion in India, accounting for approximately 20% of its global iPhone output. Of this, around $18 billion worth of iPhones were exported, highlighting India’s growing role in Apple’s international operations. However, with over 60 million iPhones sold annually in the US alone, Apple will need to scale up production significantly.
- PLI Scheme Fuels Apple’s Expansion
Apple’s accelerated investment in India began in 2020 after the Indian government introduced its production-linked incentive (PLI) scheme. Initially limited to older iPhone models, Indian facilities now manufacture the entire iPhone lineup, including the premium Pro series, for global markets.
