Apple to Manufacture iPhones for US Market in India by 2027

Apple plans to import almost all iPhones sold in the US from India by 2027, with India's production capacity expected to double to 80 million units per year. This shift is in response to the US-China tariff war, with iPhones imported from India facing no tariffs and those from China facing a 20% levy. Apple aims to diversify its supply chain operations and reduce reliance on China.

Apple Inc. has announced plans to relocate the majority of its iPhone production destined for the United States to India by 2027. This strategic move is a direct response to the ongoing US-China trade tensions and the resulting tariffs imposed on Chinese goods. The shift aims to reduce Apple's reliance on China and mitigate the impact of tariffs on its supply chain.

According to reports, Apple aims to increase its annual iPhone production in India to 80 million units by the end of 2027. This represents a significant expansion of its current output in the country, which is currently around 60 million units per year [1]. The decision to shift production to India is driven by the fact that iPhones manufactured in India will not be subject to the 20% tariffs imposed on Chinese-made devices entering the US [2].

The move is part of Apple's broader strategy to diversify its supply chain and reduce its dependence on Chinese manufacturing. The company has been investing heavily in India, partnering with local manufacturers such as Foxconn and Tata Electronics to assemble iPhones locally. Foxconn's US-bound exports from India have already surged, with a reported $770 million in January 2025, up from $110–$331 million monthly in late 2024 [1].

Apple's decision to shift production to India is also influenced by the potential for a bilateral trade agreement between India and the US, which could provide further incentives for manufacturing in India. US Vice President JD Vance recently visited India and described progress on this front as "very good" [3].

The shift in production is expected to have a significant impact on Apple's financial performance. With the US accounting for a substantial portion of its revenue, reducing tariffs on iPhones imported from India could lead to cost savings and improved profitability. However, analysts have warned that the geopolitical risks associated with the US-China tariff war remain a significant threat to Apple's outlook [2].

Apple's stock performance has been mixed in recent weeks, with the company's stock ending Monday's session down 1.94% at $193.16, losing 23% this year [2]. The stock market's reaction to the news of Apple's production shift is likely to be closely watched by investors in the coming weeks.

References:
[1] https://www.outlookbusiness.com/corporate/trump-tariff-effect-apple-to-move-all-us-iphone-production-to-india-from-china
[2] https://stocktwits.com/news-articles/markets/equity/apple-analyst-warns-of-tariff-risks-for-apple/chQSiCpRbXG
[3] https://www.business-standard.com/technology/tech-news/apple-complete-shift-iphone-us-assembly-to-india-by-2026-125042500416_1.html