Apple CEO Tim Cook recently made a big announcement that the primary production center for iPhones shipped to the US will now be India, not China. This is a major change in Apple’s global supply chain, reflecting the ongoing tariff war between the US and China and the growing importance of India in global manufacturing strategy. Now most iPhones sold in the US market will carry the ‘Made in India’ label, a major achievement for India’s manufacturing capability.
Why is Apple shifting from China to India?
For decades, China has been the center of electronics production worldwide, and companies like Apple have made most of their iPhones there. But in the last few years, the tariff war between the US and China, supply chain disruptions due to COVID-19, and geopolitical tensions have forced companies to reduce their dependence. As reported by Natalie Sherman on BBC, now most US-bound iPhones no longer made in China and now Apple has decided to move iPhone production for the US market to India. This is pretty good decision otherwise the prices of the upcoming series of iPhones would be very high!
Tim Cook clearly stated in Apple’s quarterly earnings call on May 2, 2025, “For the June quarter, we expect the majority of iPhones sold in the US to be produced in India.” This is the first time Apple has made India the primary production center for iPhones for the US.
Apple’s manufacturing is growing rapidly in India
According to Times of India report, One in five Apple iPhones sold across the world are now ‘made in India’ as production hits $22 billion. Companies like Foxconn and Tata are working rapidly to increase Apple’s production in India. In March 2025, about 600 tonnes of iPhones (about 1.5 million units) were sent to the US from India, which were transported via cargo ships. Tata Electronics has started a new iPhone assembly plant in Hosur, Tamil Nadu, while Foxconn’s $2.6 billion plant in Bengaluru will be fully operational soon.
The cost of labor in India is at par with China, but the government’s schemes like ‘Make in India’ and ‘Production Linked Incentive (PLI)’ have encouraged companies to increase production in India. Apart from this, India is also a better option to avoid tariffs imposed on goods imported from China in the US.
Vietnam is also becoming an important center
Apple is not only moving the production of iPhones but also of its other products out of China. Tim Cook also said that the iPad, MacBook, Apple Watch and AirPods sold in the US will now be produced in Vietnam. This is a clear indication that Apple does not want to keep its supply chain dependent on a single country. And just like India, labour costs in Vietnam are similar, which means the price of Apple products won’t jump much!
China will still remain the main production center
Although Apple is shifting the production of iPhones for the USA martket to India, China will still remain the main center for making iPhones for other markets of the world. Tim Cook clarified that Apple’s production network in China is very large and the ecosystem there is better than any other country so far. But giving priority to India and Vietnam for markets like the US is a well-thought-out strategy.
So the Apple products that will be sold in the market of Europe, Asia, Australia, New-Zealand, Middle-East, they will have “Made in China” label, but those which will be sold in the market of America, they all will be sourced from India and Vietnam. No, made in china product will be sold in USA as the import tariffs will make each unit price high.
Conclusion
As revealed in Reuters article, Apple aims to produce most of the iPhones sold in the US in India by 2026. This is a big step, which will help establish India as a global electronics manufacturing hub. This will create new employment opportunities in India and will also benefit the country’s economy.
This decision of Apple is not just changing the business model of a company, but it is a big change in the direction of global trade and production. India now seems to be replacing China, and this is a big example of the success of ‘Make in India’. In the next few years, India can become a manufacturing hub not only for iPhones, but also for the world’s tech companies on a larger scale. Now America will have ‘Made in India’ iPhones in its hands, and this is a matter of pride for India.
