According to a recent report by the Financial Times, Apple is planning to assemble all US-sold iPhones in India by 2026. This news came amid the US Vice President J. D. Vance’s four-day visit to India, finalizing the terms of reference for the US-India Trade Deal. Additionally, Apple’s plan seems to be a part of its long-term strategy to diversify its supply chain, shifting it from China to India after Trump’s Liberation Day Tariffs. If successful, India will be producing 60 million iPhones by next year. 

Apple to Diversify Its Supply Chain 

Apple’s supply chain spans 50 countries, with its largest share in Southeast Asia, including China, Taiwan, and India. Among these countries, China tops in assembling and manufacturing iPhones. However, Apple has started manufacturing iPhones in Tamil Nadu, and now the tech giant is looking to increase its assembly capacity in India. In the fiscal year of March 2025, Apple assembled $22 billion worth of iPhones in India, which is a 60% year-on-year increase. 

Apple after Trump’s Trade War

Since 2019, when Trump initiated the trade war with China, Apple has remained under a cloud due to trade uncertainties between the two countries.  In 2019, Apple’s stock declined 38% to $36 per share due to Trump’s trade war with China.  In Trump’s second term, the Liberation Day tariffs by Donald Trump hit Apple stocks fatally, dropping the shares by 19% after three consecutive days of sell-off, erasing more than $637 billion in market value. Considering this uncertainty created due to the US-China Trade war, Apple is looking for a long-term strategy to diversify its supply chain, depending less on China. Parallel to this, the US-India trade deal gives a silver lining to the tech giant as the two largest democracies are strengthening trade, defence, and strategic relationships.