New Delhi: Donald Trump’s aggressive tariff policy seems to have boiled down to a trade war between the US and China.
India will be the gainers as Apple is set to shift production of iPhones meant for the American market to India, reported GSM Arena. It’s a strategic move by the California-based US tech major, driven by trade tensions between the world’s two largest economies.
Apple’s policy shift is in line with the company’s goal of diversifying manufacturing operations away from China.
Apple, which sells over 60 million iPhones annually in the US, is keen on finding a more economically viable alternative than China.
Apple’s shift towards manufacturing in India began in 2017, when it partnered with Taiwanese contract manufacturer Wistron to begin producing iPhone 6s and iPhone SE models at a factory in Bengaluru.
High import taxes on Chinese goods imposed by the US government was the initial cause for the shift. Now, with the Trump administration going tough on an equally stubborn China and ramping up tariffs up to 145%, Apple has all the more reason to move more production out of China.
As per figures from April 2024, India manufactured around 14 per cent of all iPhones globally. By the end of 2025, analysts predict it could go up to 25 per cent.
Apple is learnt to be aiming to double production in India, with the target being over 60 million devices annually by 2026.
