1 week Ago By Firstpost
Apple may soon ramp up its iPhone production in India, with potential plans to double output if the United States enforces higher tariffs on Chinese imports. According to a recent report, this could push Apple’s Indian manufacturing value beyond $30 billion annually, up from the current $15-16 billion. The renewed strategy comes as Apple continues to diversify its manufacturing footprint, shifting some reliance away from China.
The Economic Times has highlighted that Apple’s production increase hinges on the policies of US President Donald Trump, who has repeatedly expressed his intent to impose steep tariffs, between 60-100 per cent, on goods imported from China. During his previous term, Trump enacted significant tariffs, and if he follows through with similar measures, experts predict that Apple would prioritise moving more of its production to India. This strategic shift could provide a much-needed boost to the Indian electronics sector, particularly in iPhone manufacturing, and reinforce India’s position as a key player in Apple’s global supply chain.
If Apple implements these plans, India’s share of global iPhone production could rise to over 26 per cent, a substantial jump from the current 12-14 per cent. The expansion could also bring major economic benefits, potentially creating around 200,000 new jobs. However, achieving this level of growth would depend on India’s ability to address challenges such as cost inefficiencies and policy hurdles related to taxes and tariffs.
Analysts emphasise that government reforms would be crucial in making India an attractive alternative to other manufacturing hubs, such as Vietnam. Neil Shah, vice-president at Counterpoint Research, has commented that India’s iPhone production could easily exceed $30 billion annually, but only if the government implements significant reforms. The focus would be on ensuring the additional production remains competitive and doesn’t shift to other countries.
The report also points out that India’s progress will depend on its ability to streamline operations and provide a conducive environment for large-scale manufacturing. Over the years, Apple has been steadily increasing its presence in India, collaborating with key partners like Foxconn, Pegatron, and Wistron. These companies have played a critical role in setting up a robust supply chain within the country.
Additionally, Apple is said to be laying the groundwork for future projects, including early manufacturing trials for the iPhone 17 at a yet-to-be-revealed Indian facility. As global trade policies evolve, Apple’s manufacturing strategy in India could play a pivotal role, not just in meeting production demands but also in shaping the country’s economic landscape..
