Apple plans on assembling all iPhones from India
(MENAFN) Apple plans to move the assembly of all its iPhones from China to India, as confirmed by India's Ministry of Communications and reported by local media. This shift comes in response to escalating trade tensions between the US and China.
Currently, most of Apple's iPhones are assembled in China by suppliers like Foxconn. However, after US President Donald Trump imposed severe 145% tariffs on some Chinese imports last month, China retaliated with its own tariffs on US goods. These developments have prompted Apple to reconsider its production strategy.
Indian Telecommunications Minister Jyotiraditya Scindia announced that Apple has decided to manufacture all of its mobile phones in India in the coming years. Apple CEO Tim Cook also confirmed the move during the company’s quarterly earnings call, stating that the majority of iPhones sold in the US will originate from India.
With iPhone sales in the US projected to reach over 60 million units annually by 2026, Apple will need to double its production in India. In the past year, Apple assembled $22 billion worth of devices in India, marking a 60% increase and bringing India's share of global iPhone production to approximately 20%. However, China still accounts for about 80% of Apple's overall production capacity.
Ahead of the implementation of Trump's global “reciprocal” tariffs in April, iPhone shipments from India to the US surged. In late March, Apple reportedly flew five planeloads of devices from India to the US. Despite the tariff challenges, Apple’s stock recovered after Trump temporarily postponed some tariffs on consumer electronics made in China.
India's Trade Minister Piyush Goyal expressed optimism about finalizing a trade deal with the US soon, with both sides making significant progress. However, experts caution that moving production from China will be challenging, especially since critical components like semiconductors are still largely produced in China. India's chip manufacturing capabilities are expected to take five to ten years to catch up.
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