Apple Inc. is shifting its iPhone manufacturing from China to India primarily due to high tariffs on Chinese-made products and concerns about profit margins. The transition aims to ensure all iPhones sold in the U.S. are made in India by 2026, which entails doubling India's annual output to over 80 million units. While Apple boasts an impressive gross margin of 47%, competition in China and performance issues pose challenges. Despite a solid year for shares, potential earnings dips could impact Apple's market dominance.
Tariffs and the concentration of iPhone assembly in China have pushed Apple to exit most of its Chinese manufacturing, planning a shift to India that will take at least a year.
Apple intends to make all iPhones sold in the U.S. in India by the end of 2026, aiming to double its iPhone output in India to over 80 million units.
With a gross margin of 47%, Apple holds the envy of the industry, but reliance on Chinese manufacturers and sales losses in China are key concerns.
Despite strong performance with a 24% increase in shares, Apple faces risks of weak earnings threatening its status as the world's most valuable company.
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