Apple shifts iPhone production from China to India by 2026
Apple will no longer assemble iPhones sold in the USA in China. The tech giant plans to move production to India, which is expected to occur in 2026, according to the "Financial Times." This shift is a result of the trade war initiated by Donald Trump.
Apple aims to diversify its supply chain and intends to relocate the assembly of 60 million iPhones to India by 2026. This move would mark a significant change in the operations of the American company. "Financial Times" highlights that nearly two decades ago, Apple invested in China, establishing the "world's best production line," and contributing to the growth of a $3 (CAD 4) trillion giant.
The "FT" notes that China, where Apple manufactures most of its iPhones through third parties like Foxconn, has faced aggressive tariffs by the US president. However, he has since signaled a willingness to negotiate with Beijing, the daily adds.
Apple betting on India
At the beginning of April, Apple lost $450 (CAD 624) billion in market capitalization. This was a direct result of the announcement to introduce tariffs, which Donald Trump later withdrew. Concurrently, Apple "rushed to export" goods from India. The company chartered cargo flights to transport 600 tonnes (approximately 1.5 million units) of iPhones from India to the USA. This strategy aims to avoid tariffs imposed on China.
The British newspaper adds that assembly is the final stage of the manufacturing process, where hundreds of components, including those supplied by China, are combined.
Let's recall that Trump initially announced "reciprocal" tariffs of over 100% on imports from China. However, he later mentioned a temporary "reprieve" for smartphones. "These devices are still subject to a separate 20% rate, which applies to all imports from China," explains the "FT."
The White House imposed reciprocal tariffs on India at 26%, but the introduction of additional tariffs was suspended when the government in New Delhi expressed its intention to reach an agreement with the Trump administration. This week, Vice President J.D. Vance visited India and stated that the countries are making "significant progress."
Apple sells over 220 million iPhones globally each year. The analytics firm Counterpoint Research estimates that 20% of all iPhones imported to the USA come from India, with the remainder from China.
"We believe this is going to be an important move for Apple to be able to maintain its growth and momentum," said Daniel Newman, CEO of the research firm Futurum Group.
