Tension as Apple shift production from China to India

Apple Inc. has on Friday April 25, 2025, announced its plans to move all iPhone assembly for the U.S. market from China to India by the end of 2026.

This decision marks a major pivot in its global manufacturing strategy.

The Financial Times reported that Apple’s decision stemmed from escalating trade tensions between the United States and China, which continued to disrupt global supply chains.

Sources familiar with the matter told FT that Apple aimed to source over 60 million iPhones annually from India within two years.

The move would require doubling India’s iPhone production output in just over 12 months—a sharp contrast to the nearly two decades it took Apple to build its production base in China.

Apple previously relied heavily on China for manufacturing, working with partners like Foxconn to produce millions of devices each year.

However, U.S. tariffs and political uncertainty have pushed the tech giant to diversify its supply chain.

In early April, Apple expedited iPhone shipments from India after former President Donald Trump reignited a trade war with China.

Though Trump temporarily exempted electronics imports from new tariffs, he clarified that the relief would be short-lived.

Trump’s administration imposed a 145 percent tariff on several Chinese goods.

In retaliation, China levied a 125 percent duty on U.S. imports.

Analysts warned that Apple could face up to $700 billion in market losses if the trade tensions worsened.

Apple accelerated its India expansion through contract manufacturers such as Tata Electronics and Foxconn.

These companies ramped up operations to support Apple’s goal of reducing its reliance on Chinese factories.

In recent months, civil unrest and local regulatory challenges further complicated Apple’s operations in China.

Several Chinese factories slowed output and sent workers home due to uncertainty surrounding U.S. sanctions.

Apple’s shift to India marked a significant turning point for the global electronics industry.

It signaled growing confidence in India’s manufacturing capabilities and underscored the risks of overdependence on a single country.

In a related report, the Financial Times stated that China’s factories had struggled to maintain operations due to falling demand and rising tariffs.

Meanwhile, U.S. officials hinted at possible trade negotiations, but Beijing reportedly refused to engage.

With production steadily rising in India, Apple positioned itself to avoid further losses and shield its supply chain from geopolitical shocks.

The company also aimed to build long-term resilience as global trade dynamics continued to evolve.

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