Apple Shifts Iphone Production To India Amid Tariff Concerns

(MENAFN- KNN India) New Delhi, May 3 (KNN) In a strategic move to mitigate the impact of escalating U.S.-China trade tensions, Apple CEO Tim Cook announced that the majority of iPhones sold in the United States will now be manufactured in India starting from the June quarter.

This decision comes as Apple faces potential tariff costs of up to $900 million in the current quarter due to new U.S. trade policies targeting Chinese imports.

To navigate these challenges, Apple is diversifying its supply chain, with India emerging as a key manufacturing hub.

Foxconn and the Tata Group, Apple's primary contract manufacturers in India, are scaling up production to meet both domestic demand and the requirements of the U.S. market.

This shift is part of Apple's broader strategy to reduce dependence on China, which has historically been its main manufacturing base.

India's share in global iPhone production has seen a significant rise, reaching 20% in FY25 from 14% in FY24. Apple aims to increase this to over 25% by the end of 2026.

The company's production in India was valued at $22 billion in FY25, with 32 million iPhones exported primarily to the U.S. and Europe.

Beyond iPhones, Apple plans to manufacture other products like iPads, Macs, Apple Watches, and AirPods in Vietnam for the U.S. market, further diversifying its production base.

Domestically, Apple is experiencing robust growth in India, setting quarterly sales records and planning to expand its retail presence beyond the existing stores in New Delhi and Mumbai.

This strategic pivot not only helps Apple navigate geopolitical challenges but also aligns with India's ambitions to become a global manufacturing powerhouse.

(KNN Bureau)

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