Apple steps up iPhone production in India amid US-China trade tensions

As global tensions between the US and China escalate, Apple is speeding up its plans to relocate its iPhone manufacturing base from China to India. In India, the tech giant has opened new plants and shipments are already underway.

Sources told Reuters that the company is preparing to make India a central hub for iPhone production, especially for the US market.

A new iPhone assembly plant operated by Tata Electronics has recently begun production in Hosur, Tamil Nadu. The factory is currently assembling older iPhone models on a single line, according to one source familiar with the matter.

A second facility — a $2.6 billion plant being built by Foxconn, Apple’s long-time manufacturing partner from Taiwan — is nearing operational readiness in Bengaluru. According to four sources, including a government official, this plant will begin assembling iPhones on one line in the coming days. One source added that the facility is designed to produce 300 to 500 iPhone units per hour, with plans to manufacture the upcoming iPhone 16 and 16e models.

The Foxconn plant in Bengaluru is expected to be completed by December 2027, eventually creating up to 50,000 jobs, another source confirmed.

US tariffs prompt urgent manufacturing shift

Apple’s move comes as the US government, under President Donald Trump, has imposed tariffs exceeding 100 per cent on Chinese goods, raising concerns about supply chain stability and potential increases in iPhone prices for American consumers.

So far, electronics, including iPhones, have been largely spared from tariffs, but Washington has warned that could change in the coming weeks. To stay ahead of possible disruptions, Apple has ramped up its India production.

In March alone, Apple shipped 600 tons of iPhones worth $2 billion to the US from India — a record monthly figure. Of that total, Foxconn contributed $1.3 billion worth of smartphones, while Tata accounted for the rest.

India’s growing role in global iPhone manufacturing

Currently, China produces more than 75 per cent of all iPhones globally, but Apple is working to reduce that dependence. According to research firm Counterpoint, India now accounts for about 18 per cent of global iPhone production.
According to reports, Apple aims to manufacture most of the iPhones sold in the US at Indian factories by the end of 2026.

Tata, a relatively new supplier to Apple, has quickly grown into a key manufacturing partner. With the latest developments, Tata and Foxconn together will operate five iPhone production plants in India.