Apple plans to shift the meeting of all iPhones bought in the US to India as early as subsequent yr, pivoting away from China to keep away from steep tariffs, the Monetary Occasions reported, citing individuals aware of the matter.
The corporate didn’t instantly reply to a Reuters request for remark.
US President Donald Trump’s commerce struggle is pushing tech corporations to diversify their provide chains. Apple is positioning India to play a key function in its manufacturing technique, despite the fact that its suppliers within the nation at the moment produce solely a small share of iPhones bought globally.
Analysts had beforehand warned that client items corresponding to iPhones could possibly be among the many hardest hit by Trump’s broad tariffs and mentioned US iPhone costs would possibly rise sharply attributable to Apple’s heavy dependence on Chinese language imports.
Greater costs might squeeze Apple’s margins and provides Android smartphone makers a aggressive edge.
Earlier this month, Washington granted tariff exclusions for smartphones, computer systems and different electronics principally imported from China, providing some aid to tech companies corresponding to Apple.
The corporate sells greater than 220 million iPhones a yr worldwide, with Counterpoint Analysis estimating a fifth of the entire imports of the system to the US coming from India, and the remainder from China.
Foxconn and Tata, Apple’s primary suppliers in India, function three factories, with two extra beneath building.
In March, Foxconn and Tata shipped practically US$2 billion price of iPhones from India to the US, a document excessive, in line with customs information.
Foxconn’s plant in Chennai now operates on Sundays, usually a break day, two sources instructed Reuters. The plant produced 20 million iPhones final yr, together with the newest iPhone 15 and iPhone 16 fashions.
