apple shifts iphone production to india amid trade tensions
Apple will no longer assemble iPhones sold in the USA in China. The tech giant plans to move production to India by 2026, according to the "Financial Times." This decision is a result of the trade war initiated by Donald Trump.
Apple aims to diversify its supply chain and intends to relocate the assembly of 60 million iPhones to India by 2026. This would mark a major shift for the American company. The "Financial Times" highlights that nearly two decades ago, Apple invested in China to establish the "world's best production line," contributing to the growth of a $3 trillion giant.
"China, where Apple manufactures most of its iPhones through third parties like Foxconn, has faced aggressive tariffs by the US president. However, he has since signaled a willingness to negotiate with Beijing," notes the "FT."
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At the beginning of April, Apple lost $450 billion in market capitalization as a direct result of the announcement of new tariffs, which Donald Trump later withdrew. In response, Apple "rushed to export" goods from India. The company chartered cargo flights to transport 660 tons (approximately 1.5 million units) of iPhones from India to the USA. This move is an effort to avoid tariffs imposed on China.
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The British newspaper adds that assembly is the final stage of the manufacturing process, where hundreds of components, including those supplied by China, are combined.
Initially, Trump announced "reciprocal" tariffs over 100% on imports from China. However, he later mentioned a temporary "reprieve" for smartphones. "These devices are still subject to a separate 20% rate, which applies to all imports from China," explains the "FT."
The White House imposed reciprocal tariffs on India at 26%, but the introduction of additional tariffs was suspended when the government in New Delhi expressed its intention to reach an agreement with the Trump administration. This week, Vice President J.D. Vance visited India and noted that the countries are making "very significant progress."
Apple sells over 220 million iPhones globally each year. The analytics firm Counterpoint Research estimates that 20% of all iPhones imported to the USA come from India, with the remainder sourced from China.
"We believe this will be a significant move for Apple to maintain its growth and momentum," said Daniel Newman, CEO of the research firm Futurum Group.
