Apple is in the middle of one of its biggest supply chain shakeups in years. Recent trade disputes and steep tariffs have forced the company to rethink where its devices are built, and India has quickly become the new hub for iPhone production.
Over the past year, smartphone exports from China to the United States have plunged, dropping more than 70% compared to the previous year. While Chinese exports across all sectors have taken a hit, the smartphone industry’s decline is especially sharp. Rising tariffs on electronics imported from China—some exceeding 100%—have made production there far less profitable for Apple.
Apple’s Strategic Pivot to India
To navigate these challenges, Apple has doubled down on its manufacturing presence in India. The company expects that within the next year, most iPhones sold in the U.S. will come directly from Indian factories. Longtime supplier Foxconn, alongside Tata Electronics, has expanded its facilities to meet Apple’s growing demand.
CEO Tim Cook recently highlighted the progress, noting that more than half of the iPhones sold in America this quarter were already produced in India. Apple also introduced the iPhone 16e at a $599 price point, a move designed to appeal to cost-conscious buyers while strengthening India’s role in Apple’s global strategy.
Ripple Effects in China
This transition has not gone unnoticed in China. Regions such as Guangdong and Henan, once heavily reliant on iPhone assembly, are starting to feel the strain. As production shifts elsewhere, concerns are mounting over potential job losses and slower local economic growth. Industry analysts suggest that these areas may eventually need to pivot toward new industries to stay competitive.
What This Means for Global Tech Manufacturing
Apple’s relocation strategy could signal a wider trend across the technology sector. With geopolitics and trade barriers reshaping international commerce, other companies may follow suit in diversifying their manufacturing bases. Experts are split on the long-term outlook—some believe Apple’s India-first approach sets a strong precedent, while others caution that building reliable supply chains outside China may take time.
Despite the uncertainty, Apple appears optimistic. The company posted nearly $95 billion in revenue last quarter, and investor confidence remains high. For now, Apple seems well-positioned to ride out global disruptions while securing a stronger foothold in India’s growing manufacturing landscape.