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 conversant in the matter.
The corporate didn’t instantly reply to a Reuters request for remark.
US President Donald Trump’s commerce conflict is pushing tech firms 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 shopper items equivalent to iPhones could possibly be among the many hardest hit by Trump’s broad tariffs and mentioned US iPhone costs may rise sharply resulting from 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 largely imported from China, providing some reduction to tech corporations equivalent to Apple.
The corporate sells greater than 220 million iPhones a yr worldwide, with Counterpoint Analysis estimating a fifth of the full imports of the gadget to the US coming from India, and the remainder from China.
Foxconn and Tata, Apple’s major suppliers in India, function three factories, with two extra underneath development.
In March, Foxconn and Tata shipped almost US$2 billion value of iPhones from India to the US, a report excessive, in accordance with customs information.
Foxconn’s plant in Chennai now operates on Sundays, sometimes a day without work, two sources instructed Reuters. The plant produced 20 million iPhones final yr, together with the most recent iPhone 15 and iPhone 16 fashions.
