Apple's CEO Tim Cook announced that India is set to play a crucial role in iPhone production for the US market, intending for a majority of US-bound iPhones to originate from India. This strategic shift aims to address the challenges posed by tariffs from the Trump administration. While the move presents opportunities for growth, experts highlight challenges related to cost competitiveness, labor market issues, and supply chain vulnerabilities. Currently, about 20% of iPhones are made in India, with plans to boost production to over 60 million units annually by 2026, amidst concerns over related fiscal implications.
A majority of iPhones sold in the US will have India as their country of origin, highlighting Apple's strategic shift to diversify production in response to tariffs.
Making iPhones in India is 5-10% more expensive due to costlier parts and inefficient factories, raising questions about competitive viability in the global market.
The fiscal implications of Apple's investment in India require careful analysis, especially regarding tax revenues and infrastructure, to ensure sustainable economic growth.
Apple is set to produce over 60 million iPhones annually in India by 2026, significantly increasing its manufacturing footprint in the South Asian market.
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