Synopsis
Apple is planning to increase its iPhone exports from India to the US as a strategy to mitigate the impact of high tariffs on Chinese imports. This move is in response to escalating trade tensions and aims to enhance Apple's supply chain.Key Takeaways
- Apple plans to boost iPhone exports from India.
- US tariffs on Chinese goods have increased significantly.
- China retaliated with tariffs on US products.
- The transition of production from China to India is complex.
- Apple's iPhone is crucial for its revenue.
New Delhi, April 8 (NationPress) The tech powerhouse Apple is set to enhance its iPhone exports from India to the United States to navigate the escalating tariffs imposed on goods from China. This strategy is being considered as a temporary measure to alleviate the surging costs associated with importing products from China, as reported by The Wall Street Journal.
Recently, the US government has enforced a hefty 34 percent tariff on imports from China, on top of an earlier duty of 20 percent.
In response, China has retaliated by imposing a 34 percent tariff on US goods, intensifying global trade conflicts.
US President Donald Trump has cautioned that tariffs could escalate up to 50 percent if China does not agree to concessions.
In the midst of this trade war, Washington has only levied a 26 percent tariff on goods from India, significantly lower than those on China and other Asian nations.
This scenario makes it more financially viable for Apple and other firms to shift their exports to India. However, the transition of production from China to India poses its own challenges, as highlighted in the report.
Apple’s iPhone generates nearly half of the company's overall revenue, and its production remains largely dependent on China. Investors are wary of the potential risks tied to altering such a crucial segment of Apple’s supply chain.
In a concerning trend, Apple’s shares have plummeted over 19 percent in the last three days, marking the steepest decline for the company in about 25 years, according to the report.
Should the US tariffs on Chinese goods persist, Apple might incur an extra $300 in hardware costs for every iPhone. Currently, the hardware expense of an iPhone stands at approximately $550, while the retail price is around $1,100.
In India, iPhones are produced by Foxconn and the Tata Group. “To facilitate the increased exports to the US, Apple will need to bolster its supply chain and manufacturing capabilities in India,” the report indicated.
This January, Apple exported iPhones valued at around Rs 19,000 crore from India, marking its highest monthly export figures ever. Year-over-year, iPhone exports from India have surged by over 30 percent.
The company achieved a significant milestone by exporting iPhones worth more than Rs 1 lakh crore from India within just 10 months of the previous financial year (April 2024 to January 2025), as per industry statistics.
This remarkable outcome has been facilitated by the government’s production-linked incentive (PLI) scheme, which is promoting extensive manufacturing within the country.
