Financial TimesCiting sources, Apple may be trying to circumvent the Trump administration'sImpact of new tariff policy, plans to move the production of iPhone models destined for the United States from China to India, with the goal of producing 2026 million iPhone models expected to be sold in the United States in India by 6000.
Although Apple has moved some iPhone production lines to India in the past few years and even started producing certain mainstream iPhone models, the main iPhone models have been produced in China since 2007.
However, due to the impact of the Trump administration's new tariffs, Apple may be preparing to relocate iPhone production from China to India to avoid the additional costs incurred by the increased tariffs. Apple previously pledged to expand iPhone production in India with its partner Foxconn by 2023, with the expected output reaching 5000 million units. This means that only an additional 1000 million iPhone units would need to be produced in India to meet production needs for the US market.
Compared with the current 145% tariff imposed by the Trump administration on products imported from China to the United States, products imported from India to the United States are currently subject to only a 10% tariff. Even if the shipping costs from India to the United States are added, the cost will still be lower than the cost of importing from China to the United States.
However, since the Trump administration has proposed that after the 90-day grace period ends, goods imported from India to the United States may face a 26% tariff, which may still put Apple in a lot of cost burden. It may depend on whether the Trump administration will take different adjustment measures after the 90-day grace period ends.
