India has been manufacturing for Apple for a few years now but iPhone inventory in the U.S. remained vastly Chinese. When Apple flew in iPhone and other devices into the U.S. to stockpile inventory it was thought that this would be the last time a majority of the company’s devices Stateside would be Chinese. It seems that assessment was true, at least for now, as future inventory will be sourced from India instead.
India has also been subjected to tariffs but the rates imposed on imports from China are higher than any other region’s. While the Trump administration is handing out exemptions for now the entire situation is too volatile for Apple to continue importing its products from China. There is no telling what the tariff rates will be a year from now and Apple has decided to plan ahead.
This is far from the only iPhone-related problem that Apple is dealing with at the moment. Apple CEO Tim Cook is anxious because of supply chain shortages affecting iPhone 17 production. In fact these shortages may possibly interfere with Apple’s plans to increase RAM across all iPhone models to catch up with the Galaxy S25 Ultra.
Samsung — arguably Apple’s largest rival in the smartphone space — moved away all manufacturing from China ages ago. While the company will also be affected by tariffs it will not be as severe as Apple. Other manufacturers who still rely on China have already started raising prices in the U.S. The OnePlus Watch 3 is more expensive in the States than anywhere else for example.
Whether Apple continues to source U.S. iPhone models from India after the Trump presidency ends is up for debate. Will the company move back to a tried and tested major production hub or will it futureproof its business against any similar issues that may occur in the future?
