Apple’s claim that most iPhones sold in the U.S. are now assembled in India has drawn attention, but it doesn’t tell the full story. While final assembly may have shifted, Apple’s reliance on China for the bulk of its iPhone production remains unchanged.
For the last two quarters, Apple CEO Tim Cook has stated that Indian suppliers source the iPhones sold in the U.S. This shift helps Apple bypass tariffs imposed in the Trump administration on Chinese-made goods. But as Apple watchers know, final assembly is only one piece of the manufacturing puzzle. Nearly every iPhone component still depends on China’s vast supply chain.
Assembly is Not the Supply Chain
Patrick McGee, a longtime Apple correspondent and author of a book on Apple’s China operations, responded to a misleading chart about iPhone sourcing. He pointed out that Indian factories handle final assembly, but Chinese factories still manufacture, machine, and prepare up to 1,000 components for each iPhone.
“These iPhones are as dependent on the China-centric supply chain as every iPhone you’ve ever held,” McGee wrote on X. “The depth and breadth of the supply chain hasn’t moved.” The devices are simply shipped to India after subassembly, where they are put together and packaged.
India’s role here is logistical, not foundational. Apple is using Indian factories to sidestep tariffs both in India and the U.S. It’s a workaround, not a pivot.
True De-Risking Will Take Years
McGee notes that for Apple to meaningfully shift away from China, it would require tens of billions in investment, years of planning, and a complex political balancing act with Beijing. That hasn’t happened yet.
So, when Apple lists India as the “source” for U.S. iPhones, it’s technically accurate, but materially misleading. The web of Chinese suppliers and factories still supports every stage of production before the device arrives in India for final assembly.
This strategy, for now, has worked. But it remains fragile. On the same day McGee highlighted these dynamics, President Donald Trump announced plans to raise tariffs on India over a separate trade dispute. India immediately condemned the move as “unjustified and unreasonable.” The threat of tariffs on Indian exports to the U.S. could complicate Apple’s workaround.
Apple plans to raise the base price of several iPhone 17 models when it announces the new lineup next month. The company’s margins remain tight, and its global production strategy is under pressure from both trade politics and long-term supply chain risks.
