Apple to build all US iPhones in India | Infinium-tech
Financial Times reported that Apple plans to switch the production of US-cold iPhone in India. According to sources, the reason for this is President Donald Trump’s ongoing trade war with China, which pushes cupertino to seek more economically viable solutions.
The diversification of iPhone production began in 2017, when Apple and Wistron began building the iPhone 6s and iPhone SE at the Bengaluru factory. The primary reason was high imports for Chinese goods, and eventually, Apple transferred more production as a trade war between the United States and China, which intensified during Donald Trump’s first term.
According to a report in April 2024, about 14% of all the world’s iPhones have been created in India, and analysts are expected to increase the stock by 25% by the end of this year. This number may proceed, however, Apple’s goal will be a target of double production from India to source from India, which by the end of 2026 iPhones more than 60 million sold annually in the United States.
China has been the theme of President Trump’s most aggressive tariff, and despite Tim Cook’s attempt to interact on exemption, this may not happen after all – no decision is final with the administration of the 47th President.
In theory, imports from China have to be subjected to 145% tariffs. Even if the smartphone was temporarily exempted, Apple will still have to pay a 20% rate which was implemented for the second time before Donald Trump became President.
https://www.youtube.com/watch?v=7fQGX7MZXCW
The tariff of 26% also killed India, although it is prevented for 90 days to allow New Delhi to negotiate a deal with Washington. American Vice President JD Vance is currently visiting India, the two countries claim that “very good progress”.
FT said the United States took around 28% of Apple’s global iPhone shipment in 2024. Investors and analysts are still struggling to understand the impact of Trump’s tariff schemes, as the company prepares for a quarterly income report next week.
Leave a Reply