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Just In Don't Miss Apple is poised to significantly increase its iPhone production in India, potentially reaching over $30 billion annually within two years. This growth is contingent on US President-elect Donald Trump's proposed tariffs on Chinese imports, as reported by the Economic Times . Currently, Apple manufactures approximately $15-16 billion worth of iPhones each year in the country.
During his campaign, Trump suggested imposing tariffs ranging from 60-100 percent on Chinese goods. This move could benefit India, particularly in electronics manufacturing. An official mentioned that while some sectors might face challenges, iPhone production could see substantial gains.
Impact of Tariffs on Apple's Manufacturing Strategy In Trump's initial term from 2016 to 2020, he implemented numerous tariffs on Chinese imports. If similar measures are enacted again, Apple might emerge as a leading manufacturer in India. The report highlighted this potential shift in Apple's manufacturing strategy due to geopolitical tensions between the US and China.
Neil Shah, vice-president at Counterpoint Research, noted that India's growing market for premium products like the iPhone Pro series supports this trend. He believes that India's production value could exceed $30 billion annually within a few years. India's Smartphone Market Dynamics Apple holds a 6 percent share of India's smartphone market.
In 2023, it captured 23 percent of revenue share, surpassing Samsung's 21 percent. Apple shipped over 10 million iPhones in India in 2023, up from 6 million in 2022, securing the top revenue position for the year. The report also emphasized that doubling iPhone production in India hinges on government reforms addressing cost inefficiencies and policy uncertainties.
Without these changes, additional production might shift to countries like Vietnam instead of remaining in India. Potential Benefits for India's Electronics Sector An official remarked that while certain areas might face losses due to these changes, electronics manufacturing stands to gain significantly. This includes increased iPhone production as a key area of growth for India.
This potential expansion aligns with Apple's broader strategy to diversify its manufacturing base beyond China. As geopolitical tensions persist, companies like Apple are exploring alternative locations for their production needs..
