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Apple eyes India for iPhone production as China faces 54% tariff: Report

Economic Times

Economic Times · 4m ago

Apple eyes India for iPhone production as China faces 54% tariff: Report

In response to U.S. tariffs, Apple is considering shifting more iPhone production to India. The Wall Street Journal reports U.S. tariffs on various countries, with India facing a 26% tariff compared to China's 54%. Apple plans to increase exports of iPhones from India to the U.S. to mitigate costs. India aims to become a significant manufacturing hub, aligning with Apple's goal to shift 25% of iPhone production to India by 2025 amidst evolving U.S.-India trade relations.

Related News

Apple exports 97.6% of iPhones to US from India amid tariffs: Report

Economic Times

Economic Times · 4m ago

Apple exports 97.6% of iPhones to US from India amid tariffs: Report

Apple increased its iPhone exports from India to the US due to impending tariffs on Chinese imports. In March 2025, 97.6% of iPhones exported to the US were from India, as Apple shifted production from China to India. S&P Global reported a 219% rise in exports, driven by tariff concerns. Despite reliance on Chinese components, Apple plans to centralize US-bound iPhone production in India by 2026, leveraging local incentive schemes and expanding manufacturing facilities.

ETtech Explainer: Inside India's iPhone dreams — The story so far

Economic Times

Economic Times · 4m ago

ETtech Explainer: Inside India's iPhone dreams — The story so far

Apple is pivoting iPhone production towards India amidst U.S.-China trade tensions and tariffs, which complicate plans to move manufacturing from China. Although Foxconn and Tata Electronics are expanding in India under the PLI scheme, China still dominates Apple's production. The U.S. push for domestic production faces cost issues, with American-assembled iPhones being significantly more expensive. Apple's shift to India is contingent on evolving trade agreements and navigating delays from China regarding production equipment.

iPhone 17 parts land in Foxconn India factory

Economic Times

Economic Times · 1m ago

iPhone 17 parts land in Foxconn India factory

Foxconn has begun importing components for assembling the upcoming iPhone 17 in India, likely for trial production. The trials will start this month, with mass production expected by August. Apple plans to make the iPhone 17 in both India and China from the outset, aiming to shift sourcing for the U.S. market entirely to India by 2026. The transition faces challenges, such as the exodus of Chinese engineers crucial for India’s manufacturing quality.

Apple partner Hon Hai injects $1.5 billion into India unit

Economic Times

Economic Times · 3m ago

Apple partner Hon Hai injects $1.5 billion into India unit

Hon Hai Precision Industry Co., a key manufacturer for Apple, is investing $1.5 billion in its Indian unit to boost iPhone production as the company shifts operations from China. This strategic move aligns with Apple's plan to import most iPhones sold in the US from India, amid geopolitical and tariff concerns. The majority of India-assembled iPhones come from Hon Hai’s southern India factory, supporting Apple’s increased local production by 60% over the past year.

Trump's new tariffs test Apple's global supply chain

Economic Times

Economic Times · 4m ago

Trump's new tariffs test Apple's global supply chain

President Donald Trump's new tariff strategy significantly impacts Apple's global supply chain. Initially, to counter 2018 tariffs on China, Apple shifted production to Vietnam and India. However, with Trump's proposal of new tariffs—46% on Vietnam and 26% on India—Apple faces increased financial pressure. Already contending with 20% tariffs on Chinese imports, Apple's costs could rise significantly, affecting profits. The company's diversification efforts—redirecting production to India and Vietnam—now confront new challenges.

Apple earnings under pressure from tariffs, slow AI roll-out - The Economic Times

Economic Times

Economic Times · 1m ago

Apple earnings under pressure from tariffs, slow AI roll-out - The Economic Times

Apple is facing challenges including U.S. tariffs, competition in China, and an AI market it has entered late. Despite expectations of a 4.2% revenue growth, investors are focused on how Apple will navigate potential liabilities in its global supply chain. To mitigate tariff impacts, Apple shifted iPhone production to India, boosting local smartphone production by 240%. Analysts expect Apple’s strategy to reduce tariffs' impact, while its cautious AI approach raises concerns amid rapid industry advancements.

US tariff to hit iPhone production expansion, electronics exports

Economic Times

Economic Times · 29d ago

US tariff to hit iPhone production expansion, electronics exports

US President Donald Trump's 25% tariff on Indian imports may hinder Apple's iPhone production expansion and electronics exports. The tariff, alongside Chinese restrictions on critical components, poses a challenge for India's electronics manufacturing sector, potentially impacting exports and increasing production costs. While Apple plans to grow its iPhone production in India, meeting US demand requires significant expansion. Experts emphasize the need for India to reduce dependencies and diversify its electronics export markets.

Foxconn recalls Chinese staff from India, disrupting Apple’s iPhone 17 plans - The Economic Times

Economic Times

Economic Times · 1m ago

Foxconn recalls Chinese staff from India, disrupting Apple’s iPhone 17 plans - The Economic Times

Foxconn has recalled over 300 Chinese engineers and technicians from its iPhone assembly plants in India, creating potential operational challenges for Apple as it prepares for iPhone 17 production. The reasons behind this recall remain unclear amidst ongoing U.S.-China trade tensions. Foxconn's investments in India, including a major plant in Devanahalli, aim to increase local iPhone production, but talent shortages may delay these plans. Apple is targeting significant production increases in India by late 2026.

Apple has had few incentives in the past to start making iPhones in US

Economic Times

Economic Times · 3m ago

Apple has had few incentives in the past to start making iPhones in US

President Trump threatened a 25% tariff on iPhones unless Apple moves production to the US, amidst the trade war with China. Apple CEO Tim Cook responded by stating that most US iPhones would be sourced from India, projecting a cost of $900 million due to tariffs. Analysts speculate that moving production to the US could triple iPhone prices, significantly impacting sales. Apple aims to negotiate with Trump, while facing challenges from rising AI technologies and changing market dynamics.

Apple informs suppliers it will source iPhone 16 batteries from India

Livemint

Livemint · 1y ago

Apple informs suppliers it will source iPhone 16 batteries from India

Apple has informed its suppliers that it plans to source batteries for the upcoming iPhone 16 from factories in India, according to a report from Financial Times. This move follows Apple's recent efforts to diversify its supply chain and relocate production outside of China. Analysts suggest that this strategic shift towards India could enhance Apple's ties with the Indian government and positively impact iPhone sales in the Indian market. Apple is also reportedly planning to scale up production in India to over $40 billion in the next 4-5 years.

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