Posted on 04/28/2025 7:49:17 PM PDT by SeekAndFind
In a strategic move driven by escalating trade tensions between the United States and China, Apple is set to transition all production of iPhones destined for the US market to India.
Apple is looking to move most of its manufacturing and production out of China, with India being one of the countries where they are increasing activities.
Apple is looking to move most of its manufacturing and production out of China, with India being one of the countries where they are increasing activities.
According to GSM Arena, the shift comes in the wake of ongoing trade policies and tariffs imposed during the administration of former President Donald Trump.
Apple's decision to ramp up its production in India aligns with its broader goal of diversifying manufacturing operations away from China.
With more than 60 million iPhones sold annually in the United States alone, the company is looking to reduce its reliance on Chinese manufacturing and find a more economically viable alternative.
This move is not entirely new for Apple. The company's shift toward manufacturing in India began back in 2017, when it partnered with Wistron, a Taiwanese contract manufacturer, to begin producing iPhone 6s and iPhone SE models at a factory in Bengaluru, India.
The initial motivation was high import taxes on Chinese goods that were imposed by the US government.
As the trade war between the two countries escalated during Trump's presidency, Apple increasingly sought to move more production outside of China.
According to GSM Arena, reports from April 2024 indicate that India now manufactures around 14 per cent of all iPhones globally, with analysts predicting this number could rise to 25 per cent by the end of the year.
The company is aiming to double production in India to meet the demand for iPhones in the US, with the goal of manufacturing over 60 million devices annually by 2026.
The shift in production comes amid the imposition of aggressive tariffs on Chinese goods by the Trump administration.
Although Apple CEO Tim Cook attempted to negotiate exemptions from these tariffs, GSM Arena reports that it is unlikely such relief will come to fruition.
In fact, imports from China have been subjected to a 145 per cent tariff, a situation that has been challenging for companies like Apple that rely on Chinese manufacturing.
Even before President Trump's second term, Apple was already facing a 20 per cent tariff rate on smartphones imported from China.
However, Apple's decision to ramp up production in India is not without its own set of challenges.
The Indian government has imposed a 26 per cent tariff on products coming from the US, which was temporarily paused for 90 days to allow for ongoing negotiations between Washington and New Delhi, as per GSM Arena.
These developments come as US Vice President JD Vance is currently in India.
India has emerged as a crucial part of Apple's global manufacturing strategy. As part of its shift to India, Apple aims to expand its production footprint across the country.
The country's Bengaluru factory, which initially began producing iPhone 6s and iPhone SE models, will now be a pivotal site for the production of newer iPhone models aimed at US consumers, as per GSM Arena.
With these changes in production strategies, Apple is facing a period of significant uncertainty.
The company is preparing to report its quarterly earnings next week, and investors and analysts are keeping a close watch on how the trade situation, along with Apple's shifting manufacturing strategy, will affect its bottom line.
As per GSM Arena, in 2024, the United States accounted for approximately 28 per cent of Apple's global iPhone shipments, making the US market crucial for the company's financial performance.
However, with the shift to India, Apple is hoping to mitigate some of the financial impact of the tariff structure while continuing to meet US demand for iPhones.
Tim Cook isn’t listening to Trump
Maybe its time to tariff India.
India. Why not Ohio?
That is pretty fast.
Higher profits for Apple . Winning ! ( not ) .
“India. Why not Ohio?”
The last thing I want to as a business owner is deal
with modern Democrats!
Costs.
Assembling an iPhone in china is about $30, India is lower while the USA would be closer to $300 to assemble.
Plus India is offering subsidies and incentives to build in India.
Apple isn’t going to assemble iPhones in the USA. BUT, it is investing $500 Billion to do the following:
* - Manufacturing Expansion: Apple is opening a new advanced manufacturing facility in Houston, Texas, to produce servers that support its AI-driven systems.
* Silicon Engineering: The company is doubling its Advanced Manufacturing Fund to support innovation in silicon engineering and high-skilled manufacturing jobs.
* Data Centers: - Manufacturing Expansion: Apple is opening a new advanced manufacturing facility in Houston, Texas, to produce servers that support its AI-driven systems.
* The investment will create 20,000 new jobs, focusing on research and development, AI, and software development.
* Apple is establishing a manufacturing academy in Michigan to train workers in advanced technologies.
This is BETTER than simply manufacturing iPhones.
It could probably be done very cheaply in Haiti. But good luck finding competent workers, or reliable electricity. Too many hell-holes that are poor that need the development, and sad that India is way better than most. I bet Musk could do it cheaply in the USA with his Optimus robots, but that’s a couple years out.
“Assembling an iPhone in china is about $30, India is lower while the USA would be closer to $300 to assemble.:
>>>>>>>>>>>>>>>>>>>>>>>>>>>
Yes, that’s the sad truth.
India is not a friend. Remember the non-aligned movement?
Just what we need....a smartphone that automatically asks others for pictures of bobs and vagene without having to type, talk or dial.......
There’s a massive opportunity here for India if they’re smart enough to take it - enter into equitable trade agreements with the US and much of China’s manufacturing might end up in India.
They should have moved a significant chunk of their production out of China YEARS AGO. They have only themselves to blame for any difficulty they have.
Hire Blackwater. 1500 mercenaries could probably take over all of Haiti.
Otherwise, control the Northern Part of Port au Prince, the port and the airport and turn it into a self-sufficient, guarded export processing zone under their control
Haitians would be grateful for the jobs and stability.
Oh crap.. this may be worse.
“Plus India is offering subsidies and incentives to build in India”
Does not India require that foreign manufactures must share the intellectual property of said product in order to manufacture there? Of course the reason why is obvious.
sorry, but I don’t see how the quality doesn’t go down with that. Cultural differences do matter in production...
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