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As America is imposing big tariffs on goods coming from China, Vietnam, and other countries, Apple is accelerating its transition of supply bases to India, to make it an essential node of iPhone and AirPods manufacture. In one of the most significant actions of his second term, US President Donald Trump has declared blanket retaliatory tariffs on more than 180 nations. The unprecedented trade measure has thrown world markets into a tailspin and put immense pressure on US multinationals such as Apple Inc.
, which depends significantly on manufacturing in tariff-affected nations such as China and Vietnam. Amid the chaos, one country will gain: India. India Gains Strategic Ground in Apple’s Global Plans While the dust is slowly settling on Trump’s trade war 2.
0, Apple is taking advantage of the opportunity to speed up its manufacturing shift to India. The nation, which is subjected to a relatively small 26 percent tariff on exports to the US, has already emerged as Apple’s manufacturing bright spot. The company is now already producing 10-15 percent of its iPhones in India, that is the full iPhone 16 series, and government leaders are stating the corporation wants to assemble 25 percent of all iPhones worldwide from here.
The margins are now pinched on iPhones in China (54 percent) as well as in Vietnam (46 percent) from higher tariffs, making Apple’s approach in India now no longer in test, but rather necessitarian. iPhone Export Surges, AirPods Next to Step Up Apple’s manufacturing shift is already paying dividends. India’s mobile phone exports have jumped nearly 50 percent in the first ten months of this fiscal year, with total exports projected to hit Rs 1.
8 trillion (roughly US$21 billion). Apple alone accounted for a record US$12.8 billion in iPhone exports in 2024, a 42 percent year-on-year rise.
Now, the firm is gearing up to ship AirPods from India as soon as this month, focusing on important markets such as the US and UK. This growth represents the next chapter of Apple’s India playbook , which seeks to expand its product manufacturing presence in the country. Tariffs Hit Apple’s Traditional Bases Hard As India’s star rises, Apple’s legacy production centres are suffering.
Vietnam, which produces 90 percent of Apple’s wearables and a fifth of its iPads, now has 46 percent tariffs imposed on it. China — still the centre of iPhone and iPad assembly, has been slapped with the highest tariffs, rendering its continued dominance economically unsustainable. Even smaller manufacturing hubs such as Thailand (36 percent) and Malaysia (25 percent) have fallen into the tariff trap, with only little cost-saving choices available to Apple outside of India.
Billions in Added Costs, Rising iPhone Prices Likely Morgan Stanley calculates that the new tariff regime would raise Apple’s annual expenditures by US$8.5 billion and lop 7.85 billion dollars off its expected 2026 profits, about 7 percent.
Buyers could take the hit, with premium iPhone models reaching US$2,300 if Apple chooses to pass it on. With a US$500 billion investment commitment in the US, including an AI server factory in Texas, Apple does not have the volume to produce devices in bulk locally. That leaves India as the most plausible alternative to soak up production and keep costs under control.
India’s Moment in the Global Supply Chain Spotlight For Apple, the message is clear: in a time of economic nationalism and tariff warfare, India provides stability, growth, and geopolitical neutrality. With favourable policies and a booming domestic market behind it, India is no longer an emerging player, it’s a core pillar in Apple’s global supply chain. As international trade regulations are rewritten in the moment, Apple’s daring turn to India could become a template for how America’s tech titans navigate the next wave of protectionist politics.
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