Apple’s manufacturing strategy in India has improved significantly in recent years thanks to its plans to expand manufacturing operations outside of China. Apple still relies on China for the bulk of production and sales, but several factors, such as trade tensions between the US and China, have played a key role in increasing production in India. A new report suggests that Apple could double its iPhone production in India if the US imposes tariffs on Chinese imports. The Cupertino-based company is likely to boost iPhone production in India to more than $30 billion a year if US President-elect Donald Trump decides to impose steep tariffs on Chinese imports.
A potential tariff hike by Trump is likely to benefit India
Apple could double its iPhone production in India to more than $30 billion a year over the next two years if incoming US President Donald Trump follows through on his threat to impose high tariffs on imports from China, the Economic Times reported, citing officials and industry experts. Apple currently manufactures devices worth approximately $15-16 billion (roughly Rs. 130,000-136,000 crore) in India.
During the election campaign, Trump threatened to impose tariffs of 60 to 100 percent on goods imported from China. This may prompt Apple to shift its projections to India. During his first term, Trump imposed tariffs on Chinese imports, and analysts believe Trump’s return could further affect India-US relations. While some parts of India may face difficulties, the electronics sector, especially iPhone manufacturing, will reportedly benefit from the move.
If Apple expands iPhone production in India, India’s share of global iPhone production is expected to rise to 26 percent in the coming years from the current 12 to 14 percent. The new facilities would potentially create 2,000,000 jobs, the report said.
The report quoted Neil Shah, vice president of research firm Counterpoint Research, as saying that the total value of iPhone manufacturing in India could exceed $30 billion per year in the next couple of years. Changes in iPhone production will depend on whether the Indian government can implement deep reforms to remove cost inefficiencies and policy uncertainty through taxes and tariffs to ensure that additional production is not shifted from China to other countries such as Vietnam, it added in the report.
Over the past few years, Apple has significantly expanded its supplier base in India, partnering with major technology firms and contract manufacturers, including Foxconn, Pegatron and Wistron. The iPhone maker is reportedly carrying out initial production work on the iPhone 17 at an unspecified plant in India.