Apple plans to abandon China to make its iPhones in India: the great reconfiguration of the global supply chain begins

The rift between the planet's two largest economic powers, the US and China, is ceasing to be an abstract fear and is materializing in a series of economic indicators, lower economic activity , and far-reaching corporate decisions that, in turn, will have a major economic impact, possibly in both China and the US. Apple, the world's largest technology company by market value, has initiated the biggest change to its supply chain since it began manufacturing in the Asian giant almost two decades ago. According to an exclusive by the Financial Times , Apple plans to assemble all iPhones sold in the US in India starting next year, marking a radical shift in its industrial strategy. This is one of the first steps in the major reconfiguration of the supply chain, which could be just around the corner given a direct "confrontation" between the world's two most important economic blocs.

This move is a direct response to the tariff escalation promoted by President Donald Trump, who has imposed tariffs of up to 100% on Chinese products. Although mobile phones have received a partial moratorium for the time being, they still bear a 20% tariff, compared to the 26% imposed on models from India. The Cupertino company seeks to reduce its exposure to trade risk and take advantage of the momentum of a bilateral agreement between New Delhi and Washington, which could ease import costs from the Asian country. This decision comes shortly after the meeting between India and the US to negotiate trade decisions.

Apple has set a goal of assembling 100% of the more than 60 million iPhones sold annually in the United States in India by the end of 2026, according to sources cited by the FT. This would entail doubling current production capacity in India, where Apple has been strengthening its operations with Foxconn and Tata Electronics. In 2024, the US market accounted for 28% of global iPhone shipments, according to IDC data, underscoring the magnitude of the challenge.

This quiet but ambitious strategic shift puts an end to a symbiotic relationship between Apple and China, which has been the backbone of its success for years. Since its inception, Apple has invested billions of dollars in the Asian country to develop a production line as efficient as it is gigantic, based on outsourcing to suppliers like Foxconn. This industrial machinery allowed the firm to become a $3 trillion company. But the stability of that model has been shaken by the growing confrontation between Beijing and Washington.

Following Trump's initial tariff announcements, which triggered an immediate reaction, the company began shipping available iPhone units for the US market from India, seeking to avoid the tariff impact. Since then, it has accelerated the development of industrial capacity in India, although it still relies heavily on components that continue to be manufactured in China.

In fact, the assembly of an iPhone is the final step in a complex process involving hundreds of parts. Despite moving final production to India, Apple remains heavily dependent on Chinese suppliers for semiconductors, batteries, camera modules, and displays. Over the past year, Foxconn and Tata have been importing pre-assembled component kits from China to assemble devices on Indian soil.

The commitment to India is not only driven by strategic reasons . The country offers an abundant labor force, competitive costs, and a more favorable political environment. The recent visit by US Vice President J.D. Vance has strengthened the climate of understanding between the two governments. According to Vance, negotiations are progressing well, and the bilateral trade framework is expected to encourage new US investment in India in key sectors such as technology and energy.

"We believe this move will be critical for Apple to maintain its growth," said Daniel Newman, CEO of the consulting firm Futurum Group, quoted by the Financial Times. "We are seeing in real time how a company of this size is reacting with lightning speed to manage tariff risk." The transition, however, raises questions about the viability of maintaining the same efficiency and quality that characterized production in China.

Apple will report its quarterly results next week, and analysts will be attentive to any indication of the impact of this structural change. The company has so far offered no official forecasts or direct comments on tariff policy, although CEO Tim Cook has maintained a fluid line of communication with the White House since Trump's inauguration, which he attended in person.

With this decision, Apple is not only diversifying its supply chain: it also marks a trend that could be replicated by other tech giants. The rift between the two superpowers appears to be moving toward irreversible decoupling, and what began as a trade battle threatens to become a profound reconfiguration of the global map of technological production.