Apple to Make All iPhones for US Market in India by 2027, Report Says

In a major move to diversify its supply chain, Apple is aiming to assemble all U.S.-bound iPhones in India by the end of 2026, according to a new report from the Financial Times.

That’s a big leap from where things stand today, and it signals Apple’s most aggressive shift yet away from China.

India Would Need to Ramp Up Production By 2x

To hit this ambitious target, Apple will need to double its iPhone production capacity in India over the next two years. That’s no small task, but the company has already been laying the groundwork. Apple has been expanding its partnerships with Foxconn and Tata Electronics to scale manufacturing in the region.

India’s growing relationship with the U.S. might also help smooth the path. With a potential bilateral trade agreement in the works, Apple could benefit from friendlier terms compared to its current challenges with China.

What’s Fueling the Shift?

Let’s be real—it’s not just about diversification. Apple is feeling the heat from renewed trade tensions between the U.S. and China. President Trump’s recent move to slap 145% tariffs on Chinese electronics sent Apple’s market value plunging by $700 billion. To stay ahead, Apple reportedly rushed India-made iPhones to the U.S. before tariffs kicked in.

Behind the scenes, Tim Cook has been busy, lobbying U.S. officials to soften the blow. He managed to secure a temporary exemption for iPhones and other Apple gear, for now. But Trump has warned that no one’s off the hook, hinting at even tighter restrictions down the line.

Related: China’s Smartphone Market Grows, But Apple Falls Behind

Majority of iPhone Components Being Manufactured in China

Even if iPhone assembly moves to India, Apple still depends on China for hundreds of components. And while the company has committed to investing $500 billion in the U.S., there are still no plans to build iPhones on American soil.

Apple will report its quarterly earnings next week, and you can bet investors will be watching closely to see how this manufacturing shakeup might affect the bottom line.