- विज्ञापन -
Cupertino [US]: In response to escalating trade tensions between the United States and China, Apple plans to shift all production of iPhones intended for the U.S. market to India. This move follows the imposition of trade policies and tariffs during the administration of former President Donald Trump, according to GSM Arena.
Apple’s decision to increase its manufacturing presence in India aligns with its broader objective of reducing dependence on Chinese manufacturing. With over 60 million iPhones sold in the U.S. each year, the company is seeking a more economically viable alternative to Chinese production.
This transition is part of a long-term strategy for Apple, which began in 2017 when it teamed up with Wistron, a Taiwanese contract manufacturer, to produce iPhone 6s and iPhone SE models at a factory in Bengaluru, India. The initial impetus for this shift was the high import taxes on Chinese products imposed by the U.S. government.
As trade tensions escalated during Trump’s presidency, Apple increasingly focused on moving production outside of China. Recent reports from April 2024 indicate that India currently manufactures about 14 percent of all iPhones globally, with estimates suggesting this could rise to 25 percent by year’s end.
Apple aims to double its production capacity in India to meet U.S. demand, targeting the manufacturing of over 60 million devices annually by 2026. This strategic shift comes amid a backdrop of aggressive tariffs on Chinese imports enforced by the Trump administration. Although CEO Tim Cook sought exemptions from these tariffs, it appears that relief may not be forthcoming, with imports from China facing tariffs as high as 145 percent. Apple had already been confronting a 20 percent tariff rate on smartphones from China even before Trump’s second term.
Despite the transition to India, Apple faces its own challenges; the Indian government has instituted a 26 percent tariff on products imported from the U.S., though this has been temporarily suspended for 90 days to facilitate ongoing negotiations between Washington and New Delhi, as per GSM Arena.
These developments coincide with U.S. Vice President JD Vance’s visit to India. As Apple expands its manufacturing strategy, India has become a critical part of its global operations. The Bengaluru factory, which originally focused on older iPhone models, is now set to be a key site for producing newer models for U.S. customers.
As Apple navigates these changes, it faces a period of considerable uncertainty. The company is preparing to announce its quarterly earnings next week, and both investors and analysts are closely monitoring how the evolving trade landscape and Apple’s manufacturing strategy will impact its financial performance. In 2024, the U.S. accounted for roughly 28 percent of Apple’s global iPhone shipments, making the market vital to its profits. With the shift to India, Apple hopes to alleviate some of the financial burden posed by tariffs while continuing to satisfy U.S. demand for iPhones.
