Apple shifts iPhone assembly to India amid trade tensions

In light of ongoing trade tensions between the United States and China, Apple has announced plans to relocate the assembly of its U.S.-bound iPhones from China to India. This pivot comes as U.S. President Donald Trump implemented significant tariffs on a variety of foreign goods, particularly targeting Chinese imports, which could reach as high as 145%. The move aims to help Apple mitigate escalating costs and adapt to new economic pressures that threaten its supply chain, especially given that components for iPhones are still largely produced in China. The Financial Times reported that Apple hopes to complete this significant transition by the end of 2026, a shift that would impact over 60 million iPhones sold annually in the U.S. In response to rising tariffs, Apple has altered its production strategy and plans to double its iPhone output in India. The company has previously moved parts of its assembly lines to both India and Vietnam, yet China continues to be the preeminent hub for iPhone production globally. This shift underscores the urgency for Apple as it faces heightened tensions between the U.S. and China that have compelled companies to reassess their operational strategies. In March 2025, it was reported that Apple had sent several flights filled with iPhones from India to the U.S. This initiative was purportedly undertaken in anticipation of a potential tariff on Indian goods that took effect shortly thereafter. Price increases for products could reach up to 43% if costs are passed on to consumers, complicating market dynamics and consumer access to Apple's products. The dilemma facing Apple concerns not only the logistical relocation of their assembly lines but also the ongoing source of components that remain dependent on Chinese manufacturing. Craig Moffett, an analyst from MoffettNathanson, expressed skepticism regarding Apple's ability to effectively manage these changes. He pointed out the realistic challenges that still exist due to the nature of Apple's supply chain, emphasizing that increasing production in India might not resolve the cost issues stemming from tariffs on essential components made in China. Moffett highlighted that while moving assembly might offer some relief, many underlying challenges would persist, potentially reducing consumer demand as prices rise. As a result, he adjusted Apple's stock price target downward, reflecting the uncertainty surrounding these developments and the looming threats to Apple's sales channels amid changing global trade policies.