Apple is on track to source all the iPhones it sells in the US from India by the end of next year as politically driven tensions drive a wedge between the US and China. This is a major move that the company has been building toward for some time, but the recent tariffs announcements may have accelerated the plan. Designed by Apple in California, Made in India If you’ve been following my work you’ll already be aware of the importance India now has for Apple. India is expected to be the manufacturing hub for 25% of all the iPhones sold globally by the end of the year, and now the Financial Times reports that Apple aims to make 60 million iPhones in India “as soon as next year” — though other sources suggest that target may prove too ambitious. To support this transition, Apple and its partners have invested billions in building their businesses there. Foxconn is currently building its second-largest factory outside China in India. At a cost of $2.5 billion, the facility will create 40,000 jobs and double its manufacturing capacity in India. India’s biggest conglomerate, the Tata Group, also makes iPhones for Apple using facilities formerly owned by Pegatron and Wistron. To support the project, Apple is also encouraging component manufacturers to set up shop in India, with India’s government recently announcing a range of incentives to help encourage them to do so. The idea behind this is, of course, to ensure that the iPhones assembled in India make use of components that are also manufactured there in order to minimize the cost of any tariffs. These investments are accompanied by a range of external improvements, including improved infrastructure. While there have been no major signals to this effect as yet, it is becoming increasingly likely that Apple will eventually commence manufacturing other products in India at some point. This didn’t — and couldn’t — happen overnight What’s important to note is that none of this is happening suddenly. This has already taken years. Apple has been working on its journey to India for almost a decade, presumably since before Apple CEO Tim Cook made his first disclosed visit to the nation. During that visit, Cook stressed that his company intended taking position in India, saying: “We’re not here for a quarter, or two quarters, or the next year, or the next year. We’re here for a thousand years.” Apple had originally intended simply to set up retail stores there and build a business from India’s burgeoning middle class, but very swiftly saw the sense of transitioning some production to the nation, accelerating these plans once the Covid plague threw international supply chains into chaos. In other words, while the company’s move to make iPhones for US market in India may seem sudden, it is something that has taken years. That effort proves that shifting manufacturing to new nations is not an overnight task; it takes time, a lot of investment, an available and accessible skilled workforce, and more. With that in mind, it is foolish to expect manufacturing infrastructure to migrate across territorial boundaries any faster than Apple — with all its advantages — has been able to achieve in India. The overall impact of Apple’s more diversified approach is a decreased reliance on its former manufacturing partner, China, from which India and other nations, including Brazil, Vietnam, and Thailand, are seeing some benefit as Apple is also increasing its manufacturing capabilities in those countries. Doing the business The company’s moves into India aren’t just about tariff avoidance. The decision to base more manufacturing there has helped Apple capture hearts and minds among consumers there, translating into accelerating business results. Driven by the iPhone 16 series, Apple sold three million iPhones for the first time in India in Q1 2025, according to IDC, its largest-ever shipment in the nation. “Apple achieved its best-ever Q1 in India, driven by strong iPhone 16 series momentum,” said Canalys. In other words, it looks as if Apple’s shrewd decision to create business in India will pay a double benefit, giving the company access to a growing and developing economy even as the so-called ‘First World’ economies tumble into existential decline. You can follow me on social media! Join me on BlueSky,  LinkedIn, Mastodon, and MeWe.