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    Apple to move assembly of US phones to India in shift away from China | Business and Economy News

    Team_NewsStudyBy Team_NewsStudyApril 26, 2025 Latest News No Comments4 Mins Read
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    As Apple grapples with United States President Donald Trump’s tariff struggle with China, it has laid out plans to maneuver to Indian meeting of the vast majority of iPhones it sells within the US by the top of 2026, a transfer that may double its present output from the South Asian nation and away from China.

    The tech big produces in China 80 p.c of the 60 million iPhones bought within the US and it is a key step that may assist it mitigate a number of the prices it faces amid rising tariffs on China.

    The Monetary Instances first reported Apple’s plans on Friday.

    Apple, an organization price greater than $3 trillion, is reportedly engaged in discussions with producers it really works with in India, together with Foxconn and the Tata Group to execute this plan, based on the information company Reuters, which cited an unnamed supply.

    The tech big has already expanded manufacturing in India to counter tariffs imposed throughout the first Trump administration. The Silicon Valley-based tech big shipped $2bn price of iPhones in March, accounting for roughly 600 tonnes of cargo from India to the US  — a file for each Tata and Foxconn, based on Reuters.

    Indian Prime Minister Narendra Modi has been pushing the country as a hub for global smartphone manufacturing. Earlier this yr, the nation eliminated import taxes for some parts for cell phone manufacturing – a lift for firms like Apple.

    “For those who’re charging import tax for middleman items, then you definitely can’t truly be aggressive versus any individual who doesn’t. Their goal is to be as aggressive as they are often to change into the main manufacturing hub,” Babak Hafezi, chief govt officer at Hafezi Capital, a global consulting agency, advised Al Jazeera.

    Apple has assembled roughly $22bn price of iPhones in India throughout the 12-month interval ending March 2025, a 60 p.c enhance from the yr prior, per a Bloomberg report. Even with the expansion, solely 20 p.c of the world’s iPhones are made in India.

    Roadblocks

    The shift in manufacturing will value Apple. In line with a Reuters report citing an unnamed supply, manufacturing iPhones in India is 5-8 p.c costlier than in China.

    “India will assist, but it surely’s not transferring the needle on China’s dependence for Apple. It can take years to make this transfer, as Apple is caught within the tariff storm,” Dan Ives, analyst at Wedbush Securities, advised Al Jazeera.

    Earlier this week, the tech outlet The Info reported that Chinese language authorities have created roadblocks for Apple suppliers to maneuver operations from China to India. They’ve delayed shipments or blocked gear shipments with out clarification. In some circumstances, Foxconn had export purposes denied and others delayed as much as 4 months.

    “By way of core iPhone manufacturing, it will take years to maneuver a big piece from China to India,” Ives added, referring to the cellphone’s parts which might be made in China and shipped to India to be assembled into the ultimate product.

    Ives additionally mentioned Apple’s plans to maneuver meeting for US telephones utterly to India might value the corporate $30bn-$40bn.

    There are considerations if India’s infrastructure can deal with the surge in manufacturing, as properly.

    “They’ve large quantities of infrastructure issues by way of site visitors and mobility, and all these completely different variables that make the price of the manufacturing longer, which finally value more cash for the corporate,” Hafezi added.

    “You want safe, steady, and productive infrastructure to maximise manufacturing as greatest as you possibly can and be globally aggressive,” he continued.

    Apple’s transfer comes because the Trump administration has signalled a willingness to ease commerce tensions between the US and China, amid considerations in regards to the financial fallout from the tariff struggle.

    On Friday, Trump claimed he had spoken to Chinese language President Xi Jinping however didn’t say when the 2 leaders final talked. In a TIME journal interview performed earlier this week, Trump mentioned that his administration has been speaking with Beijing to strike a tariff deal. China has denied any commerce talks with the US.

    However commerce talks with India are underneath method. Earlier this week, US Vice President JD Vance met India’s Modi, throughout which Vance mentioned the 2 international locations made “good progress” amid an anticipated bilateral commerce settlement.

    The information of Apple’s shift to India comes upfront of Apple’s earnings report, which is slated to be launched on Thursday.



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