- Friday, May 23, 2025
The technology giant is holding talks with its contract manufacturers in India, Foxconn and Tata, to more than double their existing capacities
By: India Weekly
THE ONGOING bitter trade war between the US and China could prove to be a gain for India as Apple is reportedly planning to ramp up its assembly of iPhones in India to become the main supplier for the US market.
The technology giant is holding talks with its contract manufacturers in India, Foxconn and Tata, to more than double their existing capacities and has set an ambitious goal to accomplish this by the end of 2026.
Apple sells over 60 million iPhones in the US annually, with roughly 80 per cent of them currently made in China.
The iPhone maker follows a complex manufacturing process involving more than 1,000 components sourced from all over the world.
Donald Trump’s announcement of aggressive tariff policies had affected Apple hard as it does not have a manufacturing presence in the US and its contract manufacturers are based out of China, Vietnam and India.
Apple shares took a massive hit when the reciprocal tariffs were announced on April 2.
However, the subsequent decision by the White House to exclude smartphones from the heaviest Chinese tariffs, did provide some relief.
Apple had stepped up production in India to beat Trump’s reciprocal tariffs deadline, shipping some 600 tons of iPhones worth $2 billion to the US in March.
The shipments from India marked a record for both Tata and Foxconn, with the latter alone for smartphones worth $1.3 billion.
However, the cost challenge remains, as iPhones manufactured in India are 5-8 per cent higher than in China.
Foxconn and Tata collectively have three factories, and two more are being built.
