Apple is planning to increase its iPhone production in India as a strategic response to the trade war initiated by Donald Trump against China. The diversification process began in 2017, and currently, about 14% of iPhones are made in India, with expectations to rise to 25% by year-end. The move comes as tariffs on Chinese imports, including smartphones, remain high, affecting Apple's cost structure. Despite temporary pauses on tariffs for Indian products to allow negotiations, the future production landscape for Apple is likely to remain complex and influenced by ongoing trade dynamics.
The diversification of iPhone production started in 2017, when Apple and Wistron started manufacturing iPhone 6s and iPhone SE at the Bengaluru factory.
According to a report from April 2024, about 14% of all iPhones in the world are made in India, and analysts expected the share to grow to 25% by the end of this year.
China has been the subject of President Trump's most aggressive tariffs, and despite Tim Cook's attempt to negotiate an exemption, it might not happen after all.
US Vice President JD Vance is currently visiting India, claiming the two countries were making 'very good progress'.
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