FT reports: Apple plans to move iPhone manufacturing to India
Apple is reportedly planning to move the assembly of all iPhones destined for the US from China to India, as the trade tensions between the US and China continue to escalate, according to the Financial Times. Recently, US President Donald Trump...
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Apple is reportedly planning to move the assembly of all iPhones destined for the US from China to India, as the trade tensions between the US and China continue to escalate, according to the Financial Times.
Recently, US President Donald Trump imposed significant tariffs on various countries, with Chinese goods facing duties as steep as 145%. He contended that these tariffs would revitalize domestic manufacturing and correct the trade imbalance. In response, Beijing enacted its own tariffs and export restrictions.
The US Customs and Border Protection agency subsequently released a list of exempted items, which now only face a separate 20% tariff and includes computers, laptops, smartphones, and other electronic devices and components. The White House commented that these exemptions aim to provide companies ample time to shift their production to the US.
On Friday, the Financial Times reported, citing sources familiar with the situation, that Apple aims to complete the transition of its assembly operations to India by the end of 2026, impacting over 60 million iPhones sold each year in the US.
According to the publication, Apple has accelerated its pre-existing diversification strategy due to the intensifying trade conflict, now targeting the doubling of its iPhone production in India.
While the company has already shifted some assembly lines to India and Vietnam, China continues to be the primary global production hub for iPhones, with Apple having invested significantly in the country over nearly two decades.
The Financial Times pointed out that many of the components used during assembly are still sourced from China.
Earlier this month, the Times of India reported, citing unnamed senior officials, that Apple had flown five planeloads of iPhones and other devices from India to the US within three days in late March. This shipment was reportedly made in anticipation of a 10% reciprocal tariff on Indian goods, which Trump implemented and took effect on April 5.
The entry-level iPhone 16 model was introduced in the US at a price of $799 last September. However, if Apple decides to pass the costs onto consumers, this price could increase by 43% to $1,142, according to Reuters, which referenced forecasts by analysts at Rosenblatt Securities.
Thomas Evans for TROIB News
Recently, US President Donald Trump imposed significant tariffs on various countries, with Chinese goods facing duties as steep as 145%. He contended that these tariffs would revitalize domestic manufacturing and correct the trade imbalance. In response, Beijing enacted its own tariffs and export restrictions.
The US Customs and Border Protection agency subsequently released a list of exempted items, which now only face a separate 20% tariff and includes computers, laptops, smartphones, and other electronic devices and components. The White House commented that these exemptions aim to provide companies ample time to shift their production to the US.
On Friday, the Financial Times reported, citing sources familiar with the situation, that Apple aims to complete the transition of its assembly operations to India by the end of 2026, impacting over 60 million iPhones sold each year in the US.
According to the publication, Apple has accelerated its pre-existing diversification strategy due to the intensifying trade conflict, now targeting the doubling of its iPhone production in India.
While the company has already shifted some assembly lines to India and Vietnam, China continues to be the primary global production hub for iPhones, with Apple having invested significantly in the country over nearly two decades.
The Financial Times pointed out that many of the components used during assembly are still sourced from China.
Earlier this month, the Times of India reported, citing unnamed senior officials, that Apple had flown five planeloads of iPhones and other devices from India to the US within three days in late March. This shipment was reportedly made in anticipation of a 10% reciprocal tariff on Indian goods, which Trump implemented and took effect on April 5.
The entry-level iPhone 16 model was introduced in the US at a price of $799 last September. However, if Apple decides to pass the costs onto consumers, this price could increase by 43% to $1,142, according to Reuters, which referenced forecasts by analysts at Rosenblatt Securities.
Thomas Evans for TROIB News
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