 "FILE PHOTO: Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo")
Despite US President Donald Trump’s tariffs, Apple will make all iPhone 17 models in India and ship them to the United States, according to Bloomberg.
As part of his anti-India campaign, Trump has slapped 50 per cent tariffs on the country — the highest in the world. He has also specifically threatened Apple in the past with tariffs for making iPhones in the country.
However, Bloomberg has reported that Apple will make all four iPhone 17 models —iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone 17 Air— for the US market in India that will start selling from next month.
Earlier this year, Apple switched the majority of iPhone’s manufacturing for the US market to India from China to avoid the fallout of the US-China trade war.
In recent years, however, the company had anyway been moving manufacturing outside of China in a bid to diversify supply chains and manufacturing centres. The relocation was driven in part by the experience of Covid-19 when months of factory closures in China disrupted manufacturing timelines and supply chains as both were concentrated in China.
As per latest estimates, around 20 per cent of all iPhones sold in the world are currently made in India . Projections say that it could reach 26-40 per cent by 2027.
Impact Shorts
View AllApple ramps up iPhone manufacturing in India
In a sign that Apple has ramped up manufacturing in India, the value of iPhones exported from the country was $7.5 billion in the April-July period, the Bloomberg reported.
For comparison, it was $17 billion for the entire last year.
Apple’s iPhones are currently being made in at least five factories in India run by the Tata group and Taiwanese contract manufacturer Foxconn.
In recent years, Tata has taken over operations of contract manufacturers Wistron and Pegatron and has expanded own facility at Tamil Nadu’s Hosur.
Bloomberg has reported that the Tata-owned factories will account for around half of iPhones made in India over the next two years.