Apple Plans Major iPhone Assembly Shift to India by 2026
Apple is preparing to shift the assembly of all iPhones sold in the United States to India by as early as next year, according to a report by the Financial Times on April 25. The strategic relocation comes amid sustained pressure from US President Donald Trump, who has urged American companies to reduce dependency on China due to ongoing trade tensions. The final decision is expected to depend heavily on India’s ability to scale up its supply chain and the outcome of US-China trade negotiations, CNBC-TV18 added, citing individuals familiar with the matter.
Highlights:
Apple may shift all US-sold iPhone assembly to India by 2026.
Move influenced by Trump’s pressure and US-China trade tensions.
Supply chain readiness in India and trade developments will be key factors.
Foxconn’s Bengaluru Plant Key to New Production Strategy
To meet the anticipated production demands, Apple’s contract manufacturers are actively expanding capacity in India. Foxconn’s upcoming plant in Bengaluru is expected to become operational within this month and is projected to reach a peak production capacity of 20 million iPhones annually. This facility is likely to play a central role in Apple’s proposed strategy to reallocate US-destined iPhone assembly to Indian soil.
Highlights:
Foxconn’s Bengaluru plant to begin operations this month.
Expected peak capacity: 20 million iPhones per year.
Plant pivotal to Apple’s relocation of US-bound assembly.
India’s Share in Global iPhone Assembly Reaches New Heights
Apple has significantly ramped up iPhone production in India, reaching an all-time high of $22 billion in value over the past year, according to a recent Bloomberg report. India now accounts for nearly 20% of Apple’s global iPhone output, marking a substantial shift in the company’s supply chain diversification strategy. This development underlines India’s growing importance in Apple’s global manufacturing plans.
Highlights:
iPhones assembled in India valued at $22 billion over the past year.
India now contributes 20% to global iPhone production.
Marks a major shift in Apple’s supply chain away from China.
Record-Breaking Q1 iPhone Shipments from India
India achieved its highest-ever Q1 iPhone sales volume in the first three months of 2025, shipping more than 3 million units. The surge was largely driven by affordability initiatives, including No Cost EMIs, cashback offers, and e-tailer discounts, which spurred high double-digit growth. IDC’s Upasna Joshi told Moneycontrol that Apple’s affordability strategy continues to pay off, helping expand its presence in the price-sensitive Indian market.
Highlights:
Over 3 million iPhones shipped from India in Q1 2025.
Record-breaking quarterly performance for Apple in India.
Boosted by No Cost EMI, cashback, and online discounts.
Apple’s Long-Term Growth Outlook in India Remains Strong
Analysts remain optimistic about Apple’s performance in India for the remainder of 2025. Counterpoint Research projects that the company will maintain a 10–15% year-on-year growth rate through the calendar year. As Apple deepens its production footprint and market engagement in India, it is expected to benefit from both domestic consumption and export-led strategies.
Highlights:
Counterpoint Research projects 10–15% YoY growth in 2025.
Growth driven by rising local demand and exports.
Apple continues to gain traction in India’s premium smartphone market.
