Apple is planning to shift the assembly of all iPhones sold in the United States to India as early as next year, according to the Financial Times, citing people familiar with the matter. The move marks Apple's most aggressive pivot yet away from China, driven by escalating trade tensions and tariff threats under President Trump's administration, with no near-term deal in sight.

The tech giant aims to source more than 60 million iPhones annually for the U.S. market from India by the end of 2026, effectively doubling its current production in the country. While apple has long sought to diversify its supply chain, this latest push is moving faster and deeper than many investors had anticipated.

China has long been the backbone of Apple's manufacturing empire—up to 80% of iPhones destined for U.S. consumers are made in China. These iPhones remain subject to a separate 20% tariff applied to all Chinese imports. With no progress in U.S.-China negotiations, Apple is accelerating its efforts to shift production and avoid further tariff hikes.

India, too, was hit with a 26% reciprocal tariff, but that levy is currently paused as the world's most populous country negotiates a bilateral trade agreement with Washington. U.S. Vice President JD Vance, during a visit to India this week, said the two countries are making "very good progress."

To meet its goal of supplying the entire U.S. market from India, Apple will need to significantly expand its capacity. Contract manufacturers such as Tata Electronics and Foxconn are ramping up their presence in India, although final iPhone assembly—which involves hundreds of components—still relies heavily on Chinese suppliers. In fact, many component kits are currently shipped from China for final assembly in India.

Apple is set to report quarterly earnings next week, and investors are closely watching for any signs of disruption stemming from Trump's evolving tariff strategy. The company has yet to comment publicly on the potential impact and continues to withhold formal earnings guidance.