Apple is increasing iPhone deliveries from India to the U.S. as it hurriedly attempts to circumvent the significant new duties imposed on products coming from China amid President Donald Trump’s recent trade restrictions.
This move serves as a short-term solution while Apple pursues an exemption from the new tariffs. During Trump’s initial term, CEO Tim Cook managed to obtain this exemption successfully.
The change was initially reported by the Wall Street Journal
Trump’s new tariffs impose a 54 percent charge on Chinese products, whereas India encounters a lesser rate of 26 percent.
Analysts estimate the Tariffs imposed on China might increase the production cost of an iPhone by $300. 16 Pro, for which Apple already incurs approximately $550 in production costs.
This year, Apple intends to manufacture approximately 25 million iPhones in India, with as many as 10 million initially intended for domestic sales. Reallocating these devices might fulfill roughly half of the U.S.'s demand, estimates Bank of America.
Since 2017, the technology behemoth has been increasing its manufacturing presence in India—not only to avoid import duties but also to lessen dependence on China and capitalize on India’s rapidly expanding smartphone sector.
Even with increased investments in factories within India and certain parts of the United States, the majority of iPhones continue to be manufactured in China, a country where Apple’s supplier network is firmly established.
Apple’s stock has dropped by 20 percent over three days, marking its steepest decline in almost 25 years, as investors express concerns about the repercussions of the intensifying trade conflict.
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