Apple Inc. (AAPL, Financial) is reportedly planning to transfer all U.S. iPhone assembly to India by next year to reduce dependency on China. This move aims for over 60 million iPhones sold annually in the U.S. to be imported from India by the end of 2026, doubling India's iPhone production capacity within a short period. While Apple has heavily invested in China over the past two decades, relying on partners like Foxconn for iPhone production, it faces risks from potential high tariffs imposed by the U.S. on Chinese imports.
Previously, such tariffs caused a significant drop in Apple's market value, prompting the company to export Indian-produced iPhones to the U.S. to avoid the tariffs. Apple is increasing production in India through partners like Tata Electronics and Foxconn. Despite this, iPhone assembly, as the final production stage, still largely depends on Chinese suppliers, needing integration of numerous components.
