April 27, 2025 | 01:44 pm
TEMPO.CO, Jakarta - Apple plans to relocate the entire production of iPhones sold in the United States (US) from China to India. This report was first published by The Financial Times based on information from several sources.
According to a report by GSM Arena, this move by Apple is in response to the trade war launched by President Donald Trump against China. Apple is seeking a more cost-effective production solution.
Apple's diversification of iPhone production actually began in 2017, when the company, along with Wistron, started producing the iPhone 6s and iPhone SE in a factory in Bengaluru, India. At the time, the high import taxes on products from China were the main reason.
The escalating tensions during Donald Trump's first term in office (January 2017-January 2021) led Apple to gradually increase its production capacity in India. By April 2024, about 14 percent of all iPhones worldwide were already being produced in India. Analysts predict that this figure will increase to 25 percent by the end of this year. The United States contributes about 28 percent of Apple iPhone shipments globally.
Currently, according to the Times of India, Apple produces 40-43 million iPhone units from the country annually, with 80 percent of them intended for export.
Production is predicted to increase to 70-80 million units by the end of 2026, positioning India as the main supplier of 60 million iPhone units in the United States. Apple produces iPhones in India through Foxconn and Tata Electronics. Tata previously acquired production facilities from Wistron and Pegatron.
The Difference Between India and China
China was the country most affected by Trump's aggressive tariff policies during his second term as President of the United States. Although Apple CEO Tim Cook attempted to negotiate an exemption from the tariffs, it appeared to be unsuccessful.
In theory, products imported from the United States to China are subject to a 145 percent tariff. Although there was a temporary exemption for smartphones, Apple still had to pay a 20 percent tariff--a figure that was already in place even before Trump's re-election as president.
India is also subject to a 26 percent tariff, but its implementation was postponed for 90 days to allow for negotiations between New Delhi and Washington. US Vice President JD Vance, who is currently visiting India, stated that both countries are making very good progress.
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