Apple is turbocharging its “friend-shoring” strategy, thanks in large part to President Trump’s ongoing trade war with Beijing, by initiating plans to shift all iPhone production for the U.S. market from China to India starting next year, according to the Financial Times, citing sources. The move marks a significant step toward diversifying Apple’s supply chain away from China, in an effort to avoid tariffs.
The sources said the continued diversification of the supply chain into India may suggest that iPhone production could be ramped up to 60 million units by the end of 2026, or the amount required to satisfy the U.S. market.
Apple still relies heavily on Chinese suppliers for components, but final assembly is being relocated to Indian facilities operated by Foxconn and Tata Electronics. Unbeknownst to U.S. consumers, Apple has already ramped up production of Indian-made iPhones to avoid the 145% tariffs Trump imposed on China.
Daniel Newman of the Futurum Group research firm said Tim Cook’s friend-shoring of iPhone production out of China to India (for the U.S. market) “is going to be an important move for the company to be able to maintain its growth and momentum,” adding, “We are seeing in real time how a company with these resources is moving at relative light speed to address the tariff risk.”
