Punitive tariffs: All iPhones for the US market will allegedly come from India
Apple is apparently preparing for permanently high US tariffs for China. iPhones built in India are expected to meet demand the US market as early as 2026.
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Apple allegedly wants to double the final production of iPhones in India in a short space of time in order to circumvent the unpredictable US tariffs against China. The manufacturer wants to have all iPhones for the US market assembled in India by the end of 2026, as reported by the Financial Times, citing informed sources. This plan to diversify the supply chain goes far beyond what investors have previously assumed, the business newspaper notes.
Half of all iPhones "Assembled in India" in future?
Aggressive punitive tariffs imposed by the Trump administration against China had already led to Apple frantically flying iPhones from India to the USA in March, allegedly worth billions of US dollars. The suppliers and contract manufacturers involved apparently generated record figures. According to industry estimates, Apple sells around 60 million iPhones per year in its home market of the USA, slightly less than a third of global sales.
Apple has been massively expanding iPhone production in India for several years, and the rapid ramp-up of local capacities has repeatedly led to grievances – and even violent riots in factories. According to estimates, around 40 million iPhones now roll off the production line in India every year, including older model series that are usually less in demand in the USA. To date, Apple has had the vast majority of iPhones assembled in China, where a large proportion of its suppliers are also based. Ultimately, Apple wants to have half of the final assembly carried out in India, reports The Information. However, this is also a thorn in China's side: lately, there have been various reports of disruptions to the relocation of production, including export bans on certain machines.
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Apple boss is considered a Trump whisperer
India was also affected by Trump's punitive tariffs, but these were immediately paused for negotiations and were lower than the tariffs recently imposed on China. According to media reports, Apple CEO Tim Cook has a direct line to the Trump administration; an exemption for smartphones spares Apple extremely high import duties in the USA – for now.
(lbe)
