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    Home»Latest News»Apple to move assembly of US phones to India in shift away from China | Business and Economy News
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    Apple to move assembly of US phones to India in shift away from China | Business and Economy News

    Team_Prime US NewsBy Team_Prime US NewsApril 25, 2025No Comments4 Mins Read
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    As Apple grapples with United States President Donald Trump’s tariff conflict with China, it has laid out plans to maneuver to Indian meeting of nearly all of iPhones it sells within the US by the tip of 2026, a transfer that may double its present output from the South Asian nation and away from China.

    The tech large produces in China 80 % of the 60 million iPhones bought within the US and this can be a key step that may assist it mitigate a number of the prices it faces amid rising tariffs on China.

    The Monetary Occasions first reported Apple’s plans on Friday.

    Apple, an organization price greater than $3 trillion, is reportedly engaged in discussions with producers it really works with in India, together with Foxconn and the Tata Group to execute this plan, in accordance with the information company Reuters, which cited an unnamed supply.

    The tech large has already expanded manufacturing in India to counter tariffs imposed through the first Trump administration. The Silicon Valley-based tech large shipped $2bn price of iPhones in March, accounting for roughly 600 tonnes of cargo from India to the US  — a report for each Tata and Foxconn, in accordance with Reuters.

    Indian Prime Minister Narendra Modi has been pushing the country as a hub for global smartphone manufacturing. Earlier this 12 months, the nation eliminated import taxes for some parts for cell phone manufacturing – a lift for corporations like Apple.

    “In case you’re charging import tax for middleman items, then you definitely can’t truly be aggressive versus any individual who doesn’t. Their goal is to be as aggressive as they are often to develop into the main manufacturing hub,” Babak Hafezi, chief govt officer at Hafezi Capital, a world consulting agency, advised Al Jazeera.

    Apple has assembled roughly $22bn price of iPhones in India through the 12-month interval ending March 2025, a 60 % improve from the 12 months prior, per a Bloomberg report. Even with the expansion, solely 20 % of the world’s iPhones are made in India.

    Roadblocks

    The shift in manufacturing will price Apple. Based on a Reuters report citing an unnamed supply, manufacturing iPhones in India is 5-8 % dearer than in China.

    “India will assist, but it surely’s not shifting the needle on China’s dependence for Apple. It is going to take years to make this transfer, as Apple is caught within the tariff storm,” Dan Ives, analyst at Wedbush Securities, advised Al Jazeera.

    Earlier this week, the tech outlet The Info reported that Chinese language authorities have created roadblocks for Apple suppliers to maneuver operations from China to India. They’ve delayed shipments or blocked tools shipments with out rationalization. In some instances, Foxconn had export functions denied and others delayed as much as 4 months.

    “When it comes to core iPhone manufacturing, it will take years to maneuver a big piece from China to India,” Ives added, referring to the cellphone’s parts which can be made in China and shipped to India to be assembled into the ultimate product.

    Ives additionally stated Apple’s plans to maneuver meeting for US telephones utterly to India may price the corporate $30bn-$40bn.

    There are considerations if India’s infrastructure can deal with the surge in manufacturing, as nicely.

    “They’ve huge quantities of infrastructure issues when it comes to site visitors and mobility, and all these totally different variables that make the price of the manufacturing longer, which ultimately price extra money for the corporate,” Hafezi added.

    “You want safe, steady, and productive infrastructure to maximise manufacturing as greatest as you may and be globally aggressive,” he continued.

    Apple’s transfer comes because the Trump administration has signalled a willingness to ease commerce tensions between the US and China, amid considerations concerning the financial fallout from the tariff conflict.

    On Friday, Trump claimed he had spoken to Chinese language President Xi Jinping however didn’t say when the 2 leaders final talked. In a TIME journal interview performed earlier this week, Trump stated that his administration has been speaking with Beijing to strike a tariff deal. China has denied any commerce talks with the US.

    However commerce talks with India are below manner. Earlier this week, US Vice President JD Vance met India’s Modi, throughout which Vance stated the 2 nations made “good progress” amid an anticipated bilateral commerce settlement.

    The information of Apple’s shift to India comes prematurely of Apple’s earnings report, which is slated to be launched on Thursday.



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