Apple’s switching things up — big time. In response to new U.S. tariffs, the tech giant is moving quickly to start building all iPhones for American buyers in India by the end of 2026, according to a new report from Bloomberg.
What’s Going On?
Originally, Apple was gradually shifting some iPhone production to India. But now, they’ve hit fast-forward. Instead of slowly ramping up, they’re aiming for 100% of U.S.-bound iPhones to be made in India — which is a huge deal. The goal? Dodge the impact of new tariffs and avoid relying so heavily on China, especially with trade tensions still high.
Here’s a breakdown of Apple’s game plan:
- In the past fiscal year (ending in March), Apple assembled 40 million iPhones in India.
- Now, they’re planning to double that to 80 million units.
- Apple sold around 60 million iPhones in the U.S. last year — so 80 million should more than cover it.
Why the Sudden Rush?
Apple started shifting production out of China during the pandemic, but recent U.S. tariffs have cranked up the pressure. Even though smartphones were mostly exempt from earlier tariffs, other electronics and materials were not. There’s also still a 20% tariff on Chinese imports in general — and Apple doesn’t want to risk getting caught in the crossfire.
On top of that, manufacturing in the U.S. isn’t really an option. It’s just too expensive. Even with the new tariffs, it’s cheaper for Apple to keep production in places like India than to build iPhones in America.
Beating the Clock
Apple’s not just shifting production — it’s racing the clock to beat the tariff deadlines. Earlier this month, reports said Apple flew 1.5 million iPhones into the U.S. in one go, trying to avoid the tariffs from hitting those devices.
To make that happen, Apple even convinced airport officials in India to speed up customs clearance from 30 hours down to just six. That’s some serious hustle.
As one source told Reuters, Apple “wanted to beat the tariff.”
What This Means for iPhone Prices?
So what’s the catch? Could this mean more expensive iPhones in the U.S.? Possibly, but Apple seems determined to avoid raising prices — at least for now.
The company reportedly:
- Stocked up on iPhones ahead of time to buy some breathing room.
- Might squeeze suppliers for better deals.
- Could take a hit on profit margins just to keep prices stable.
Basically, Apple’s doing everything it can to keep iPhone prices from jumping — even if it means making a little less money on each phone.
In short: Apple’s playing the long game here, moving more production to India and getting creative to stay ahead of trade hurdles. If all goes to plan, the iPhone you buy in a couple of years will likely be “Made in India” — and hopefully still the same price.