More than 60 million iPhones are sold annually in the US. Apple plans to source this from India in its entirety by the end of 2026. 

This is a significant pivot away from China, where Apple has established its production over decades. An estimated nine in 10 iPhones are made in China – accounting for nearly 200 million devices – and approximately 150 of Apple’s top 187 suppliers had factories in China in 2024.

India is subject to a baseline levy of 10% by the US; the 27% ‘reciprocal’ tariff which it was set to face has now been put on hold until 9 July. 

On the other hand, China has been hit by import taxes of up to 145%, and China has hit back with a 125% tax on American products. Although developments this morning show promising signs of de-escalation – US President Donald Trump told reporters, “We may reveal it later, but they had meetings this morning, and we’ve been meeting with China” – relocating to India may instil more confidence amongst investors.

After Apple entered China in the 1990s, the relationship between the company and the country has been one of reciprocal benefit. As China opened up to the world, Apple grew more entrenched in its manufacturing sector.

In an interview last year, Apple’s CEO Tim Cook said, “There’s no supply chain in the world that’s more critical to us than China.” Both in practice and in threat, tariffs have forced U-turns in manufacturing strategies for many large American businesses.