Technology giant Apple wants to move the production of American iPhones to India from China due to the customs confrontation between Washington and Beijing, initiated by American leader Donald Trump. The relocation of smartphone assembly shops is planned for next year. This is reported by the Financial Times, writes UNN.
Details
According to the publication, citing its sources, these efforts are provided for by Apple's strategy to diversify the supply chain. However, they will be implemented faster than planned and expected by investors. The company's goal is to focus on producing more than 60 million iPhones in India, which are sold annually in the US, by the end of 2026.
This will mean a doubling of production in India after almost two decades of investing funds in factories in China, which contributed to the company's growth into a technology giant worth $3 trillion. Apple will have to significantly increase capacity in India to fulfill all orders for the United States from this country.
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China, where Apple manufactures most of its iPhones through third-party suppliers such as Foxconn, has suffered the toughest tightening of export duties from the US. Although since then, US President Donald Trump has already signaled his readiness to negotiate with Beijing.
After Trump announced a radical increase in duties, which led to a decrease in Apple's market value by 700 billion dollars, the company rushed to export existing Indian-made iPhones to the US to avoid inflated export tariffs from China.
In addition, Apple has been steadily increasing capacity in India in recent years with contract manufacturers Tata Electronics and Foxconn, although it still assembles most of its smartphones in China. Assembling iPhones is the last step in the manufacturing process, which combines hundreds of components, which is why Apple is still heavily dependent on Chinese suppliers.
Addendum
Initially, Trump announced a "mutual" increase in duties of more than 100% on imports from China, and then offered a temporary deferral for smartphones. The devices are still subject to a separate 20% rate, which applies to all imports from China.
India was affected by the so-called "mutual" tariff of 26%, although its effect has been suspended while New Delhi insists on a bilateral trade agreement with the United States. During a visit to India, US Vice President Jay Dee Vance said that the countries are making "very good progress" in negotiations on trade regulation.
The US accounted for approximately 28% of Apple's 232.1 million global iPhone shipments in 2024.
Let us remind you
The Chinese government is considering suspending 125% duties on some goods from the USA, such as medical equipment, chemicals and aircraft rental, due to the economic consequences of the trade war.