Apple's Shift of US iPhone Assembly to India Marks a Strategic Blow to China, But How?

In a significant move that could seriously shake up China's iron grip on making the world's gadgets, tech giant Apple has begun shifting some of its US-bound iPhone assembly operations to India.

This decision isn't just a logistical tweak but a calculated strategic move with potentially far-reaching consequences for China's dominance in global electronics manufacturing. But what exactly makes this shift such a noteworthy blow?

Word is that Apple is gearing up to transfer its entire iPhone assembly from the United States to India shortly, perhaps even by next year. As a Financial Times report indicates, this would signify a substantial change in Apple's worldwide manufacturing approach, highlighting its ongoing efforts to lessen its reliance on China.

There's more to this than just finding cheaper workers. With Washington and Beijing at each other's throats over tariffs and tech bans, Apple's clearly had enough of the drama. They're spreading their bets around instead of risking everything on China.

Apple's India Assembly Push

The conclusive action will hinge on how India can expand its supply network and the future of commerce discussions between China and the United States. The report also mentioned that US President Donald Trump has been encouraging Apple to decrease its reliance on China because of persistent trade disagreements.

Trump recently affirmed that discussions with China concerning import taxes are ongoing. Concurrently, Apple's manufacturing partners in India are accelerating their production output. The Foxconn facility in Bengaluru could begin operations by April and may eventually manufacture as many as 20 million units when it reaches full capacity.

Approximately 70 percent of the foreign sales came from Apple's iPhone production network, with Foxconn located in Tamil Nadu responsible for almost 50 percent of the shipments abroad.

The Foxconn plant's overseas dispatches showed a surge exceeding 40 percent compared to the same period in the preceding financial year. Earlier reports suggest that Apple's iPhone assembly in India has achieved a record level, with products worth £16.53 billion ($22 billion) produced over the past year.

Why Apple's India Shift Could Redefine The Nation's Future

India currently accounts for almost a fifth of Apple's entire global iPhone production, illustrating the nation's growing importance in the tech giant's manufacturing strategy. The Indian consumer base is also demonstrating robust growth for Apple.

Over 3 million iPhones were shipped from India during the first three months of 2025, marking an unprecedented volume for Apple in this nation. The rise in sales can be attributed to budget-friendly programs such as interest-free EMIs, money-back deals, and savings offered by online stores.

According to a report by Jagran, market analysts predict that Apple will uphold a stable annual growth rate of 10-15 per cent in India during the current year. 'With manufacturing ramping up and local demand growing, India is rapidly becoming a key part of Apple's global strategy,' experts say.

A Notable Blow To China's Dominance

If Apple moves its entire US-bound iPhone assembly, it will empower India to emerge as a prominent global manufacturing centre. This transition would fortify India's electronics sector and bolster the 'Make in India' campaign.

The change could lead to a surge in employment within manufacturing, transit, support sectors, and component procurement. The relocation would usher in greater financial input and sophisticated technology to India, elevating expertise, infrastructure, and domestic creation of premium electronic goods.

Apple's partners, such as Foxconn and Wistron, could also expand their presence in India, providing additional momentum to the sector's growth. Such a shift could attract other technology firms to view India as an alternative to China, broadening the global supply network.

A rise in local output might also make iPhones more affordable in India, enhancing affordability. However, India continues to grapple with issues like cumbersome regulations, deficient infrastructure, and the task of preparing workers for high-tech employment. Regardless of these limitations, Apple's move could be a watershed moment, establishing India as a crucial entity in the global landscape of advanced manufacturing.