Apple is racing against the clock to relocate iPhone production out of China in an effort to shield itself from tariffs imposed under President Donald Trump’s trade policies. With tariffs threatening to push the price of an iPhone 16 Pro Max with 1TB storage above $2,000 and even over $3,000 if manufactured entirely in the U.S. the tech giant is urgently reshaping its supply chain.
According to reports, Apple plans to significantly expand its production operations in India by the end of next year. Currently, India accounts for around 40 million iPhones annually, with one out of every five iPhones now made there. This figure is expected to double as Foxconn, Apple’s manufacturing partner, builds a massive $2.5 billion facility spanning over 13 million square feet near Bengaluru a project internally nicknamed “Project Elephant.”
Although Apple first began diversifying production out of China during the COVID-19 lockdowns of 2022, the latest tariff threats have intensified the company’s efforts. Beyond India, Apple’s low-cost iPhone 16e is already being produced in Brazil, where, like India, only a 10% tariff applies under current U.S. policies.
Apple has also been investing heavily in its U.S. operations, pledging $500 billion toward domestic initiatives, including a new campus and server factories in Texas dedicated to its Apple Intelligence developments.
The stakes are high: Apple lost more than $600 billion in market value following Trump’s tariff announcement on April 2. A temporary 90-day pause was later introduced, alongside partial exemptions for smartphones, computers, and laptops — reportedly following a call between Apple CEO Tim Cook and Commerce Secretary Howard Lutnick. However, Trump has maintained that no permanent exemptions have been granted and warned that full tariffs could return.
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