It has been reported that Apple is planning to shift its iPhone assembly operations to India for the US market in order to reduce reliance on Chinese manufacturing bases amidst the trade war initiated by Donald Trump. The tech giant, with a value of $3 trillion (£2.3 trillion), aims to make this transition soon, as mentioned in the Financial Times article next year.
Apple has been affected by Trump’s tariff policies, resulting in iPhones being subjected to heavy import taxes when entering the US. Despite this, the White House decided to exclude smartphones from the highest tariffs imposed on Chinese products, providing some relief to Apple.
The intricate manufacturing process of iPhones involves sourcing over 1,000 components from various parts of the world, with an estimated 90% of iPhones currently being assembled domestically. By the end of 2026, Apple plans to have over 60 million iPhones sold in the US assembled in India.
In an effort to offset the impact of tariffs, Apple’s leading Indian suppliers have increased production in India and have shipped a significant number of phones to the US. Apple has also chartered freight flights to ensure an adequate stock in key markets.
Despite discussions about moving iPhone production to the US, analysts do not foresee this happening in the near future. The costs associated with manufacturing iPhones in the US are expected to be high, making it financially challenging for Apple to shift production entirely.
Source: www.theguardian.com
