Apple Inc. is dramatically accelerating its plan to move all U.S.-bound iPhone production from China to India, with a target finish date of the end of 2026. This strategic shift aims to lessen the impact of hefty tariffs imposed on Chinese imports and reduce geopolitical risks associated with relying on China for production. Currently, Apple manufactures around 40 million iPhones in India annually, but to meet this goal, production will need to increase more than double, exceeding 80 million units per year. This move reflects a broader effort by Apple and its manufacturing partners, including Foxconn and Tata Electronics, to diversify their production beyond China, where roughly 80% of U.S.-bound iPhones are currently made. This shift is further accelerated by the ongoing trade tensions and tariffs implemented under the Trump administration, which at one point levied up to 145% duties on Chinese goods. While some tariffs on electronics were temporarily suspended, the financial risks remain considerable. India, despite higher manufacturing costs estimated to be 5-10% above China, offers a more tariff-friendly environment and is becoming a key hub for Apple’s supply chain expansion. Foxconn and Tata are investing in expanding their manufacturing facilities in southern India to support this surge in production, which saw a 60% jump in fiscal year ending March 2025 with Apple assembling $22 billion worth of iPhones in India that year, followed by exports of $17.5 billion from the country. This move helps Apple mitigate tariff-related costs and aligns with India’s goal to become a major smartphone manufacturing center. CEO Tim Cook has been actively engaged in discussions to ensure a smooth transition and protect the company from tariffs, including securing temporary exemptions on specific products. While China remains Apple’s largest production base, this shift to India for U.S.-bound iPhones represents a dramatic realignment of its global supply chain driven by economic and geopolitical changes that are rapidly reshaping the tech manufacturing landscape.