Our Bureau
New Delhi
In a latest development in the ongoing US-China tariff war, Apple is reportedly planning to shift the assembly of all iPhones sold in the United States to India by 2026. The step is significant given China’s dominance in the tech giant’s manufacturing infrastructure that can prove to be detrimental in the long-run if diversification of supply is not carried out.
If successful, this shift would see over 60 million iPhones, produced annually in India by 2026, twice the current output, revealed in a report by Financial times.
The final decision, however will depend on how India can accommodate the demand with a larger supply chain in the backdrop of the heightened trade tensions between US and China. Apple’s contract manufacturers in India are already stepping up production.
According to reports, US President Donald Trump has been pressuring Apple to move away from China as the trade talk talks between the two countries are still underway.
US is Apple’s most significant market accounting for as much as 28% of the company’s global iPhone shipments, according to IDC. Moving the assembly line to India will help Apple avoid steep tariffs and most importantly, provide geopolitical stability with regards to the US-China trade war.
The Trump administration slapped China with tariffs that once were as high as 145 percent and still include a 20 percent duty on smartphones. Though some electronics like phones were recently exempted, the relief appears to be temporary.
