Apple planning to shift assembly of all US-sold iPhones into India by next year

Apple is planning to shift to India the assembly of all the iPhones sold in America by as early as next year, a development reported by the Financial Times on April 25, just days after Moneycontrol reported citing officials that the US-based multinational could likely use India to manufacture for the United States.

“Apple could likely use India to manufacture for the United States as it is going to be cheaper than China,” one government official had told Moneycontrol on April 22. “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,” one of the officials said. Read more here.

The decision will depend on adequate supply chain ramp up in India, as well path that China and US trade talks take. US President Trump has been pushing Apple to pivot away from China as the trade tensions linger on between the two nations and Trump confirming China is in talks with US over the tariffs.

Already in India, Apple's contract manufacturers are ramping up existing capacity, with Foxconn's Bengaluru plant likely to be operational within this month, with a peak capacity to make 20 million units.