Apple Shifts iPhone Production to India Amid US-China Trade Tensions

In response to escalating US-China trade tensions, Apple is transitioning iPhone production for the US market to India. This strategic move aims to diversify manufacturing away from China, amid high tariffs. Apple's Indian production now constitutes 14% of global output, with expectations to double by 2026.

In a strategic realignment aimed at countering escalating trade tensions between the United States and China, Apple is poised to relocate its iPhone production intended for the US market to India, according to GSM Arena. This shift is a response to the trade policies and tariffs imposed during former President Donald Trump's administration.

Apple's expansion in India aligns with its broader ambition to diversify manufacturing operations beyond China. With over 60 million iPhones sold annually in the United States, the tech giant is poised to reduce its dependency on Chinese production to a more economically viable backdrop. Originally initiated in 2017, Apple's partnership with Taiwanese manufacturer Wistron in India began with producing older iPhone models in Bengaluru.

The aggressive tariffs and challenging trade war climate have pushed Apple to escalate its production in India. Reports suggest India currently produces approximately 14 per cent of global iPhones, with projections to rise to 25 per cent by year-end. Even with challenges, including India's 26 per cent tariff on some U.S. goods, Apple is intent on a robust production shift to meet American demand, potentially cushioning the financial impact of trade tariffs.

(With inputs from agencies.)