Apple Explores India iPhone Production to Mitigate U.S. Tariffs on China
Apple is reportedly evaluating a strategic shift to import more iPhones from India, aiming to circumvent the newly imposed 54% U.S. tariffs on Chinese-made goods. According to a Wall Street Journal report, this move comes as a temporary solution while the tech giant negotiates for potential exemptions with the Trump administration.
Why India? The Tariff Advantage
- Current China Tariffs: 54% additional duty on imported goods (announced last week)
- Proposed India Tariffs: Significantly lower at 26%
- Cost Impact: Without tariff relief, importing an iPhone 16 Pro from China could spike by \(300—from \)550 to $850 per unit.
Production Capacity and Market Impact
Apple had already planned to manufacture 25 million iPhones in India this year, with 10 million units earmarked for the local Indian market. Bank of America analyst Wamsi Mohan notes that redirecting all 25 million India-made iPhones to the U.S. could cover ~50% of annual U.S. iPhone demand.
A Calculated Short-Term Strategy
While Apple explores tariff exemptions, it remains hesitant to overhaul its entrenched Chinese supply chain. This India pivot reflects a tactical response to protect profit margins rather than a long-term manufacturing shift. Industry watchers will monitor how this plays out amid ongoing U.S.-China trade tensions.
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