Apple Inc. is preparing to transition all iPhone manufacturing for the U.S. market to India within the next two to three years, according to a Financial Times report, marking a pivotal step in its strategy to reduce reliance on Chinese production amid escalating geopolitical and supply chain risks.
The tech giant is collaborating with key suppliers, including Foxconn, Pegatron, and Wistron, to rapidly scale operations in India as part of its “China+1” diversification model, which seeks to mitigate exposure to trade tensions, pandemic disruptions, and political instability linked to its longstanding dependence on China.
This shift represents one of Apple’s most ambitious supply chain overhauls to date. While India currently manufactures iPhones primarily for domestic sales and limited exports, the new plan would position the country as a primary hub servicing Apple’s largest consumer base the United States. Analysts note the move aligns with broader industry trends, as multinational corporations increasingly pivot toward India and Southeast Asia to capitalize on lower labor costs, expanding infrastructure, and growing consumer markets.
However, challenges remain. Replicating China’s decades-old ecosystem of precision manufacturing, efficient logistics, and skilled labor will require significant investment. Apple must navigate India’s complex regulatory environment, train local workforces, and ensure suppliers meet stringent quality benchmarks. Previous efforts to accelerate Indian production faced delays due to infrastructure gaps and bureaucratic hurdles, though recent government incentives and Apple’s own supplier development programs have bolstered progress.
The transition underscores deepening U.S.-China trade decoupling and highlights India’s emergence as a critical player in global tech manufacturing. Industry observers suggest Apple’s pivot could incentivize other Western firms to follow suit, reshaping international trade networks. While Apple has not formally announced the plan, details may emerge during upcoming earnings discussions or product launches.
The strategic realignment reflects a recalibration of risk in an era of heightened geopolitical friction. As China faces economic headwinds and strained relations with Western governments, India’s proactive policies to attract foreign investment coupled with its vast market potential position it as a viable alternative. Yet the success of Apple’s bet hinges on India’s ability to address lingering operational bottlenecks, a test that will determine the pace of global supply chain evolution in the coming decade.
