Have iPhone Exports from India to the US Really Surged by 76%?
Synopsis
Key Takeaways
- 76% year-on-year increase in iPhone exports from India to the US.
- Nearly 3 million iPhones shipped to the US in April.
- China's shipments fell to 900,000 units.
- Apple's strategic planning includes stockpiling ahead of tariffs.
- India emerges as a critical manufacturing hub for Apple.
New Delhi, May 28 (NationPress) As Apple continues to expand its manufacturing footprint in India, iPhone exports from the nation to the US experienced a remarkable increase of 76 percent (year-on-year) in April, a recent report reveals.
Market research firm Omdia estimates that approximately 3 million iPhones produced in India were dispatched to the US during this period.
In stark contrast, shipments of iPhones from China saw a significant drop of 76 percent, falling to merely 900,000 units.
This development marks the first instance where India has consistently surpassed China in iPhone deliveries to the US market, as reported by CNBC, referencing the data.
“Apple has been strategizing for potential trade disruptions for several years now. The surge in April likely indicates proactive stockpiling ahead of anticipated tariff increases,” stated Le Xuan Chiew, research manager at Omdia, as noted in the report.
The current demand for iPhones in the US stands at around 20 million units per quarter.
Without a fully-integrated supply chain, a US-made Apple iPhone could command an astonishing price of $3,500 (over Rs 2,98,000).
Dan Ives, global head of technology research at Wedbush Securities, recently shared with CNN that the concept of producing iPhones entirely within the US is a “fictional tale.”
Ives further cautioned that attempting to recreate Apple’s intricate Asian supply chain in the US would lead to substantial cost escalations.
Moreover, analysts predict it would take Apple at least three years and an investment of $30 billion to relocate just 10 percent of its supply chain to the US.
Apple CEO Tim Cook remarked during the latest quarterly earnings call that “the majority” of iPhones destined for the US in the June quarter will originate from India.
Former US President Donald Trump had threatened a 50 percent tax on all imports from the EU and a 25 percent tariff on Apple products unless iPhones were manufactured in the US.
However, sources indicate that India’s competitive advantages position it as a favorable destination for tech giants like Apple, which has expressed its commitment to enhance manufacturing in India and support the Make in India initiative.
In recent years, India has emerged as a pivotal hub for Apple’s global supply chain. Leading tech companies recognize the economic benefits of establishing manufacturing operations in the country.