Apple is reportedly considering making all of its iPhones for the US market in China, suggests a new report from the Financial Times. Apple's shares have taken a beating as investors fret over higher product costs in the US stemming from tariffs on China. Amidst the chaos, multiple reports have surfaced about the Cupertino, California, technology giant seeking to diversify its production base away from China. The latest report from the FT claims that Apple aims to produce all iPhones to be sold in the US in India instead of China starting as early as next year.
Apple Might Product All US iPhones In India By End Of 2026, Says Report
Today's report follows one from earlier this month, which claimed that Apple might increase its US iPhone production in Brazil to compensate for the US government's tariffs on China. The report quoted anonymous sources and provided little additional context. Apple already manufactures the entry-level variants of some of its iPhones in Brazil to benefit from lower shipment costs on the American continent.
Analysts estimate that up to 28% of Apple's sales come from the US, which made it unsurprising that the firm briefly lost the crown of being the world's most valuable company earlier this month as the tariff narrative escalated. However, while Apple's shares have gained close to 21% since their tariff-induced bottom, the uncertainty surrounding the Trump administration's negotiations with China.
While Beijing denied negotiations earlier yesterday, the President asserted later on that negotiations were taking place as the world's two biggest economies look eye-to-eye in a trade war that could reshape the global economy.
Amidst this context, a fresh report from the Financial Times claims that Apple is seeking to shift all of its iPhone production from the US to India from China. Such a move would entail the smartphone's final assembly in the country with parts sourced from all over the world, including China. While the Trump administration also levied tariffs on Indian imports - 26% - these have been suspended as India and US negotiate a trade deal and Vice President JD Vance makes a trip to the country.
If the report bears fruit and Apple's plans materialize, then all of the iPhones sold in the US could be manufactured in India by the end of next year. Apple's primary manufacturing partner, Foxconn, has a presence in India, but reports have claimed that efforts to move equipment out of China is proving to be difficult.
Apple potentially moving production equipment out of China would be a risky gambit. Not only would it preempt any potential negotiations between the US and China, but it would also deprive the firm of any potential long-term tariff exemptions from the US government. The move could also jeopardize current iPhone production at a time when the stock has faced headwinds from lower iPhone sales, particularly in China.
