As part of its strategy to disengage itself from tense ties with China, Apple aims to import all iPhones sold in the US to India for assembly as early as next year.

Apple is aiming to finish the drive sooner than investors anticipate; according to reports, the company intends to have over 60 million iPhones sold in the US sourced from India by the end of 2026.

If these plans are effective, India's iPhone production will almost double in a year. Apple developed production lines in China for 20 years.

Apple's production base is primarily in China, where Foxconn and other third parties construct the company's products.

However, owing to this dependence, the company is exposed to high trade tariffs that US President Trump has slapped on the second-largest economy in the world.

When Trump launched his fresh trade battle with China in early April, there were reports that Apple was shipping iPhones out of India in a hurry.

Trump announced that tariffs would be applied to electronic imports even though he lifted the restriction on Chinese imports of electronic devices. China imposed a 125 percent tax in retaliation for Trump's 145 percent tariffs. Concerns over Apple's susceptibility caused its market valuation to drop by as much as $700 billion.

Apple partnered with two contract manufacturers, Foxconn and Tata Electronics, to expand its production capacity in India.

As ties with the US deteriorate, Beijing is giving the company more attention. Nonetheless, China continues to produce the majority of Apple's flagship iPhones.

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In contrast, India is subject to a 26 percent reciprocal tariff that has been halted. India and Washington are also negotiating a bilateral trade accord. During a recent visit to India, US Vice President JD Vance called the country's progress "very good." It is anticipated that India will be the first nation to dodge Trump's reciprocal tariffs and sign a trade agreement with the US.

Through alliances with Foxconn and Tata Electronics, Apple has expanded its manufacturing presence in India. The latter have been building iPhones locally while importing component sets from China. In the first three months of 2025, over three million iPhones were shipped from India, according to recent data from market research firm IDC, despite a decline in the country's overall smartphone market.