MW Making iPhones has gotten complicated in tariff wars. Apple reportedly has a plan to stop some sourcing from China.

By Barbara Kollmeyer

FT reports Apple hoping to shift output of all U.S.-made phones by end 2026

Apple is reportedly working on a plan to avoid future tariff headaches by moving production of all iPhones sold in the U.S. from China to India.

The tech giant, which is due to report results next week, aims to source iPhones for its vital U.S. market to the South Asian country by the end of 2026, the Financial Times reported on Friday, citing sources.

That would require Apple to double its India output and end two decades of heavy investment in China, where it relies on companies such as Foxconn to assemble its popular handset. Bank of America research estimates that Apple makes roughly 10% of its iPhones in India.

An Apple spokesperson could not immediately be reached for comment.

China faces particularly punitive duties under the Trump administration's tariff plans that reach as high as 145%, and financial markets have endured extreme volatility in recent months as hopes rise and fade over the potential for negotiations.

"In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China," Wedbush analyst Dan Ives said earlier this month. India could be a more viable option for some production as analysts like Ives have warned Apple couldn't easily redirect production to the U.S., given the years it would take to build factories.

Apple shares have lost 16% in 2025 as investors have particularly punished tech companies, amid concerns over fallout from tariff wars and AI spending.

The Trump administration has issued some tariff exemptions, covering smartphones and other consumer-electronics products, though that was followed by a warning from U.S. Commerce Secretary Howard Lutnick that more tariffs are on the way.

Some analysts expect Apple's iPhone and other product sales surged in March and April as consumers try to get ahead of tariffs, but worry about weaker sales going forward. UBS analysts have warned of a tepid demand backdrop for the balance of the year and into 2026.

U.S. Vice President JD Vance proclaimed "very good progress" had been made in his recent visit to India, where he met with Prime Minister Narendra Modi to discuss ties over the economy, trade and geopolitics. India was subjected to a 26% levy under the now-paused tariff plans by the U.S., which is its biggest trading partner.

Read: Pandemic-era shortages may return without trade-war deal with China, businesses warn

-Barbara Kollmeyer

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April 25, 2025 03:02 ET (07:02 GMT)

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