Apple is speeding up plans to shift iPhone production from China to India, aiming to make most iPhones sold in the US in Indian factories by late 2026, according to a recent report by Reuters. The move comes as Apple tries to avoid possible higher US tariffs on Chinese-made goods, a source told Reuters.

The tech giant is in urgent discussions with suppliers Foxconn and Tata to expand production capacity in India, according to the source, who requested anonymity due to the confidential nature of the plans. Currently, about 80% of the 60+ million iPhones sold annually in the US are made in China.

According to the Reuters report, higher import duties on components make production costs 5-10% more expensive than in China. Despite this, Apple has already ramped up Indian output, shipping $2 billion worth of iPhones to the US in March, which is a record for suppliers Foxconn and Tata.

In April, the US imposed a 26% tariff on some Indian imports, significantly lower than the over 100% tariffs China faced at the time. The Trump administration has since paused most tariffs for three months, excluding China.

As such, Apple's diversification strategy positions India as a key manufacturing base, suggests the report. Foxconn and Tata currently operate three factories in the country, with two more under construction. The Financial Times first reported Apple's expanded India production plans last week.