**India**: Apple is relocating all iPhone assembly for the US market from China to India by 2026, driven by supply chain diversification and geopolitical factors. India’s production capacity is set to double, reinforcing its status as a key manufacturing and trade hub amid shifting global economic dynamics.
Apple Corporation is undertaking a significant strategic shift by relocating the assembly of all iPhones intended for the U.S. market from China to India by the end of 2026. This transition highlights a deliberate move to diversify Apple’s supply chain and reduce its reliance on China, signalling a major change in the global tech manufacturing landscape. According to the Financial Times, Apple’s manufacturing partners, including Foxconn and Tata Electronics, are expected to double production capacity in India to support this shift. Between April and October 2024, India produced $10 billion worth of iPhones, exporting $7 billion during that period alone. Over the past four years, Apple has created 175,000 direct jobs in India, underscoring the country’s growing importance in Apple’s production ecosystem.
The gradual disengagement from China has been underway since 2017, initially driven by increasing political pressure in Washington to diversify supply chains amidst intensifying U.S.-China trade tensions. Apple began experimenting with shifting assembly of some AirPods and Beats headphones to Vietnam and India in 2019. The COVID-19 pandemic further exposed vulnerabilities in Apple’s over-dependence on China, particularly with lockdowns in manufacturing hubs such as Shenzhen and Zhengzhou disrupting production. Subsequent labour unrest at Foxconn’s iPhone City in Zhengzhou in 2022 triggered supply shortages and delayed shipments globally. By 2023, Apple had expanded iPad and MacBook assembly to Vietnam and Malaysia and had invested in building manufacturing infrastructure in southern India to accommodate high-end device production.
Apart from geopolitical factors, Apple’s move away from China also reflects the changing dynamics of the Chinese consumer market. The company’s sales in Greater China fell by 8% in the first quarter of 2025, impacted by rising competition from local brands like Huawei, which benefits from technological innovation and patriotic consumer sentiment. This has contributed to shifting consumer preferences in China towards more affordable, domestically produced alternatives.
India, by contrast, presents attractive conditions for international corporations. It offers a young, tech-savvy labour force and a government focused on promoting foreign investment, exemplified by its Production-Linked Incentive (PLI) scheme which has turned India into a major smartphone export centre. By the fourth quarter of 2025, iPhone shipments from India are projected to account for 25% of Apple’s global output. India is leveraging its growing manufacturing capabilities to establish itself as a critical alternative to China in global supply chains.
India’s ambitions also extend into diplomatic and trade realms, notably through a near-finalised free trade agreement with the United Kingdom. This trade deal, which may be signed before Indian state elections later in 2024, will include tariff reductions on electric vehicles and Scotch whisky and enhanced market access for services and investment. Key sticking points such as agricultural imports, visa provisions for Indian professionals, and data protection regulations have been resolved. The UK’s relaxation of visa caps for skilled Indian workers and India’s agreement to clearer rules around digital trade and intellectual property create a more investor-friendly environment. India’s legal framework, based on common law and English jurisprudence, offers regulatory predictability attractive to global investors.
The trade relationship between the U.S., UK, and India forms part of a broader geopolitical and economic realignment. The UK sought a trade partner outside the European Union, while India sought increased prestige, capital influx, and leverage in global affairs. This cooperation corresponds with policies associated with former U.S. President Donald Trump’s “America First” agenda, which prioritised reducing multilateral trade dependencies in favour of bilateral agreements and supply chain resilience strategies.
The strategic reorientation of global supply chains away from China has been accelerated by these shifts, positioning India as a pivotal player between East and West in economic and geopolitical spheres. Other alternatives such as Vietnam and Mexico face limitations in scale or political stability, whereas India offers the necessary combination of workforce, scale, and political environment to attract large-scale manufacturing investments.
JD Vance, noted for shaping the strategic vision of U.S. global alliances during President Trump’s administration, has stressed India’s importance in this realignment. Apple’s planned shift of iPhone assembly to Tamil Nadu symbolises more than a change in manufacturing location; it reflects the changing centres of economic and geopolitical power in the world.
The American Thinker is reporting these developments as indicative of a significant evolution in the global economic order, with India emerging as a key hub in technology manufacturing and international trade.
Source: Noah Wire Services
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