Apple’s bold plan to shift the assembly of all iPhones destined for the US market by the end of 2026 now faces a significant hurdle due to growing delays in importing critical machinery and components from China. These delays, stemming from prolonged clearance and permission issues, could jeopardize the launch of the upcoming iPhone 17 and the company’s target to double iPhone production in India to over 60 million units annually, aimed at circumventing steep US tariffs on Chinese imports.
Apple has been aggressively ramping up its manufacturing footprint in India, with production valued at around $22 billion in the fiscal year ending March 202 – -a 60% year-on-year increase. The tech giant relies heavily on Indian partners like Foxconn and Tata Electronics, which have taken over former Wistron and Pegatron facilities, to meet rising global demand and reduce dependence on China amid escalating US-China trade tensions.
However, despite India’s favorable trade environment and government incentives, Apple’s supply chain remains intricately linked to China for key components and machinery essential for iPhone assembly. The current bottlenecks in importing these inputs risk slowing down production timelines and increasing costs, potentially delaying India’s emergence as the primary supplier of iPhones to the US. Industry experts note that while assembly in India is the final stage, shifting the entire supply chain away from China is a complex, multi-year process. Bloomberg Intelligence estimates that moving even 10% of production out of China could take up to eight years, underscoring the scale of the challenge Apple faces.
The delays come at a critical juncture as Apple aims to capitalize on India’s growing manufacturing ecosystem, supported by Prime Minister Narendra Modi’s push to make India a global electronics hub. The company plans to nearly double its Indian iPhone output by 2026, potentially producing 70-80 million units annually, which could account for 40% of global iPhone sales.While the US government has imposed high tariffs on Chinese imports-sometimes exceeding 100% – India currently benefits from a paused reciprocal tariff and is in advanced talks for a bilateral trade deal with the US, making it an attractive manufacturing base. Yet, without timely clearance of machinery imports from China, Apple’s ambitions risk being undermined.