Apple Will Build Most US iPhones in India by the End of 2026

$AAPL is rapidly accelerating its move away from China, setting a bold new target: by the end of 2026, it aims to assemble most of the iPhones sold in the United States in India.

According to multiple reports, Apple plans to roughly double its annual iPhone output in India to over 80 million units. This is a significant leap from the more than 40 million units produced there in the fiscal year ending March 2025. Considering that Apple sells over 60 million iPhones annually in the US alone, this move would make India a central hub for one of Apple’s most critical markets.

This shift didn’t happen overnight. The process began when strict COVID-19 lockdowns in China severely disrupted production at Apple’s largest facilities. Add in the pressure from tariffs under former President Donald Trump and the ongoing tensions between Washington and Beijing, and the motivation becomes even clearer: Apple is looking for insurance against geopolitical risk.

In the last year alone, Apple’s iPhone production value in India jumped by nearly 60%, reaching around US$22 billion. India now accounts for about 20% of Apple’s global iPhone output — still far behind China, but growing fast.

The bulk of India’s iPhone production is concentrated at Foxconn’s massive factories in the south, supported by Tata Group’s fast-expanding manufacturing arm, which took over Wistron’s local operations and collaborates with Pegatron. Both Tata and Foxconn are pouring investment into new plants to boost capacity further.

From my perspective, the most interesting detail lies in the timing:

Shipments from India to the US accelerated sharply after Trump announced new “reciprocal” tariffs earlier this year. Although electronics like smartphones were later exempted from these tariffs, the mere threat of higher trade barriers seems to have reinforced Apple’s urgency to diversify supply chains.

At the same time, China still holds critical advantages. Its supply chain ecosystem — from parts suppliers to skilled labor — remains unmatched in scale and efficiency. No matter how quickly India scales up, Apple is unlikely to fully abandon China anytime soon.

Still, the message is unmistakable: India is no longer just a backup plan — it’s becoming a core pillar of Apple’s global manufacturing strategy.

Looking ahead, I believe Apple’s success in India will depend not just on factory output but also on how well it manages local challenges — including labor issues, infrastructure gaps, and political risk. If it succeeds, Apple could fundamentally reshape the geography of tech manufacturing for the next decade.