iPhones to Be Made in India Amid Rising Tariffs: Apple is making a major move towards India, and it’s creating quite a buzz! With growing tensions between the US and China, especially after the return of Donald Trump’s administration, Apple has decided to ramp up its iPhone production in India. If everything goes as planned, India will soon manufacture 70-80 million iPhones annually by late 2026, aiming to become the main supplier of iPhones to the US market.
All You Need to Know
- Apple currently makes around 40-43 million iPhones every year in India.
- Around 80% of these are exported.
- The target is to produce 70-80 million units by late 2026.
- India could handle nearly 40% of Apple’s total global iPhone production soon.
- Foxconn and Tata Electronics are leading Apple’s manufacturing efforts in India.
- Tata Electronics recently took over Wistron and Pegatron’s facilities to boost production.
Why is Apple Making This Big Move?
The rising trade tensions between the United States and China have made it tough for American companies. Trump’s return brought back tough tariffs on Chinese goods, with smartphone imports facing heavy taxes. To protect its business, Apple is fast-tracking its manufacturing shift to India.
Interestingly, Apple had already started its journey in India back in 2017 by making older iPhone models like the iPhone 6s and SE in Bengaluru. Now, India is not just a backup plan but a key manufacturing hub for Apple.
Production Expansion and Government Support
Government officials have said they are ready to help Apple and its suppliers for a smooth transition. India’s electronics manufacturing sector will get a huge boost with this move. Experts feel this will also help India strengthen its position in global value chains.
According to reports, Apple’s suppliers have already exported iPhones worth nearly ₹1.5 lakh crore in FY25, a big jump from ₹85,000 crore in FY24. This shows the growing trust and investment Apple is putting into India.
Challenges Ahead
However, the shift is not without problems. India still faces a cost disadvantage of about 7-7.5% compared to China and Vietnam. Experts believe India must reduce tariffs on crucial components and improve its tax structures to stay competitive globally.
If India successfully addresses these issues, it could attract even more manufacturing projects, not just from Apple but from other global giants too.
What Happens Next?
Apple’s target is to move all iPhone assembly for the US market to India by 2026. This could make India Apple’s second-largest manufacturing base after China. With over 60 million iPhones sold in the US alone every year, this is a massive opportunity for India.
At the same time, Apple needs to carefully handle challenges like high tariffs between India and the US. Recently, a 26% tariff on US products coming into India was temporarily paused for 90 days for better negotiations. How these talks progress will play a big role in Apple’s India plans.
Apple’s Bigger Dream for India
Apple is not just looking at India as a manufacturing hub but also as a major market. India, being the world’s second-largest smartphone market, is becoming more important to Apple’s future growth. Expanding its manufacturing in India also means quicker supply to Indian customers and possible cost benefits in the long run.
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