Apple and Samsung, two of the world’s biggest tech giants, are reportedly considering a substantial shift in their global production strategies, with India emerging as a key beneficiary. This development comes in direct response to the recent imposition of steep import tariffs by former U.S. President Donald Trump, who has introduced new duties as part of a broader effort to reshape the global trade landscape. The revised tariff structure includes a massive 54% import duty on goods from China, 46% on products from Vietnam, and 26% on exports from India. While all three nations face higher tariffs, India has emerged as the most economically viable option for companies looking to maintain competitive pricing in the American market without absorbing major financial hits.
Apple, which has already been manufacturing select iPhone models in India for several years, is reportedly planning to deepen its manufacturing footprint in the country. According to a report by The Times of India, the tech giant is expected to gradually pivot more of its iPhone production to India, especially for units destined for the U.S. market. Apple’s move is seen as a strategic attempt to reduce over-reliance on China, which, despite its established infrastructure, now poses serious financial disadvantages due to the newly imposed tariffs.
A senior industry official quoted in the report stated, “India's factories will be increasingly used to ship only to the U.S. Demand in other markets such as Europe, Latin America, and even Asia will now be catered to from the China factories.” This statement reflects a potential geographic bifurcation in Apple’s supply chain, where India becomes the primary hub for North American shipments, while China continues to service other regions. This model would not only diversify risk but also boost India’s status as a critical player in global technology manufacturing.
Currently, Apple relies on Foxconn and Tata Group for assembling iPhones in India. Tata, in particular, has been expanding aggressively in this sector and has recently taken over operations from Wistron and Pegatron, two of Apple’s former suppliers. Tata’s consolidation of these facilities signals a long-term commitment to electronics manufacturing, and the company is expected to make substantial new investments in the near future to support Apple’s potential production expansion.
Although Apple is exploring other options—including the United Arab Emirates, Saudi Arabia, and Brazil, where U.S. import tariffs are significantly lower at around 10%—India continues to hold a strategic advantage. Not only does it already have the necessary manufacturing infrastructure, but India also benefits from an experienced labor force, a large domestic market, and government-backed incentives under the Production Linked Incentive (PLI) scheme, which further reduces operational costs. Unless Apple decides to invest heavily in building new supply chains from scratch in these alternative locations, India remains the most practical and cost-effective choice for immediate and large-scale production.
Should Apple follow through on this strategy, it would likely result in a surge in exports from India, far surpassing the current projection of $10 billion worth of iPhone shipments to the U.S. for this financial year. Such an expansion could have a cascading effect, encouraging other component suppliers and ancillary industries to set up shop in India, thereby boosting the overall manufacturing ecosystem and creating thousands of new jobs.
Samsung, too, is feeling the ripple effects of the U.S. tariff overhaul. The company, which has long relied on its massive production facilities in Vietnam, finds itself reevaluating its supply chain in light of the new 46% duty on Vietnamese exports to the U.S. Samsung currently exports nearly $55 billion worth of electronics annually from Vietnam, but the rising costs could significantly erode its margins. In response, Samsung is reportedly considering expanding its Indian manufacturing base, especially for flagship products intended for U.S. consumers.
An industry source mentioned that “Samsung will find it better to ship from India at a duty of 26 per cent than export from Vietnam,” emphasizing that even though the move might be temporary, it underscores the increasing importance of India’s ‘Make in India’ initiative. Samsung already manufactures high-end devices like the Galaxy S25 and the Fold series at its Noida factory, one of the largest mobile manufacturing units in the world. Any further expansion in India would not only serve U.S. demand but could also help the company buffer against geopolitical uncertainties and trade disruptions.
Meanwhile, American consumers could soon feel the impact of these shifts. According to a Reuters report, companies like Apple may be forced to raise prices of their products by 30–40% in the U.S. to compensate for the increased production and logistics costs. This would make devices like iPhones, iPads, and MacBooks significantly more expensive unless companies can either absorb the added costs internally or fully reengineer their supply chains to take advantage of low-tariff regions like India.
The full picture will become clearer in the coming months, as tech companies finalize their strategic responses to the evolving trade landscape. However, the current momentum suggests that India is on the verge of becoming a central node in the global technology supply chain, not just for Apple and Samsung, but potentially for many other global electronics brands. If this trajectory continues, it could mark a transformative moment in India’s economic history, cementing its position as a global manufacturing powerhouse and altering the balance of global production for years to come.
