Apple is reportedly planning to move the assembly of all iPhones sold in the U.S. to India, potentially starting as soon as next year, according to a news report by the Financial Times. Based on sources, Moneycontrol mentioned on April 22 that the U.S.-based company might use India as a manufacturing hub for the U.S. market. A government official told Moneycontrol on April 22, “Apple could likely use India to manufacture for the United States as it is going to be cheaper than China.”

The official added, “The relevant line ministry is looking at is what will happen with the US asking Apple to shift manufacturing to the US. They are studying what might be the impact on iPhone prices, manufacturing, as well as exports of the product.”

The judgment will rely on how well supply chains in India can be scaled up, as well as the outcome of ongoing trade talks between China and the U.S. President Trump has been urging Apple to shift its focus away from China due to the continuing trade tensions, with Trump ensuring that China is in discussions with the U.S. about tariffs. In India, Apple’s contract manufacturers are already increasing their production capacity, and Foxconn’s plant in Bengaluru is expected to start operations this month. The plant is set to reach a peak production capacity of 20 million units.

Production of Apple's iPhone in India has hit a record high, with devices worth $22 billion assembled in the past year, according to a recent report by Bloomberg News. India now contributes to nearly 20% of all iPhones assembled worldwide, marking a major change in the company’s supply chain strategy.

In the first three months of this year, India exported over 3 million units, marking the highest-ever first-quarter sales in the country. "Surpassing 3 million units in 1Q25, Apple will record its largest first-quarter shipments in India, facilitated by affordability schemes such as No Cost EMIs, cashback, and eTailer discounts that spurred high double-digit growth," said Upasna Joshi, research manager at IDC, in an interview with Moneycontrol. According to Counterpoint Research, Apple is expected to maintain a 10-15 per cent year-on-year growth rate in 2025.