Apple Planning to Shift Entire Assembly of iPhones for US to India by 2026: Report
In a significant move that could have far-reaching implications for the global technology industry, Apple is planning to shift the entire assembly operation of iPhones it sells in the US to India by 2026, according to a report by Financial Times. The decision is contingent upon how quickly Apple’s supply chain can scale up in India, and will also depend on the ongoing tariff negotiations between the US and China.
As per the report, Apple’s plans are still in the early stages, and the company is yet to make a formal announcement. However, sources familiar with the matter have confirmed that the tech giant is indeed exploring the possibility of shifting its iPhone assembly operations to India.
The move is seen as a strategic one, as it would enable Apple to reduce its reliance on Chinese manufacturing, which has been a subject of controversy in recent times. The US-China trade war has led to increased tariffs and trade restrictions, making it more challenging for companies like Apple to operate in China.
India, on the other hand, has emerged as a promising destination for electronics manufacturing, with the government offering a range of incentives and subsidies to attract foreign investment. In recent years, several major tech companies, including Samsung, Foxconn, and Wistron, have set up manufacturing facilities in India, taking advantage of the country’s large pool of skilled labor and relatively low operating costs.
Apple, too, has already started assembling some of its iPhone models in India, including the iPhone 11 and iPhone 12 series. The company has partnered with local manufacturers, such as Wistron and Foxconn, to set up manufacturing facilities in the country. However, the new plan would involve shifting the entire assembly operation of iPhones sold in the US to India, a move that would require significant investments and logistical efforts.
The shift is expected to be completed by 2026, although the exact timeline is still unclear. Apple is reportedly working closely with its suppliers to ensure a smooth transition, and has already started scouting for potential locations in India for its new manufacturing facilities.
The decision to shift iPhone assembly to India is seen as a strategic move to reduce Apple’s dependence on China, which currently accounts for around 70% of the company’s global production. By expanding its manufacturing footprint in India, Apple can reduce its exposure to the US-China trade tensions and take advantage of the growing demand for smartphones in the Indian market.
The move is also expected to have a positive impact on India’s economy, creating thousands of new jobs and boosting local manufacturing. The Indian government has been actively promoting the country as a preferred destination for electronics manufacturing, and the Apple move would be a significant boost to the government’s efforts.
However, the shift is not without its challenges. Apple would need to invest heavily in setting up new manufacturing facilities in India, and would also need to ensure that its supply chain is able to meet the demands of the US market. Additionally, the company would need to navigate the complex Indian regulatory environment, which can be challenging for foreign companies.
The Apple move is also seen as a major blow to China’s dominance in the global electronics manufacturing industry. China has been the world’s largest electronics manufacturing hub for several years, with companies like Foxconn, Huawei, and Xiaomi setting up massive manufacturing facilities in the country. However, the US-China trade war has led to increased tariffs and trade restrictions, making it more challenging for Chinese companies to operate in the global market.
In conclusion, Apple’s plan to shift its iPhone assembly operation to India by 2026 is a significant development that could have far-reaching implications for the global technology industry. While the move presents several challenges, it also offers significant opportunities for Apple to reduce its dependence on China and take advantage of the growing demand for smartphones in the Indian market.
