Apple is planning to move all U.S. iPhone production to India, reducing reliance on China amid ongoing Trump-era tariff policies.
Apple is making big changes to its production plans. The company is set to move the manufacturing of all its iPhones from China to India.
This decision comes in response to tariffs imposed by President Donald Trump, which have affected the tech industry significantly.
Trump’s tariffs are impacting the tech industry
Donald Trump’s tariffs on goods from China have caused major disruptions in the economy.
These tariffs are part of a larger trade war between the United States and China. Many tech companies, including Apple, have felt the impact.
The tariffs make it more expensive to import products from China, which has forced Apple to look for alternatives.
Apple to shift iPhone production to India following Donald Trump’s tariffs on China
Apple’s production mainly takes place in China, where about 90% of its iPhones are made.
However, with the new tariffs, Apple faces the possibility of significantly higher prices.
Reports suggest that if Apple had to move production to the U.S., the price of iPhones could rise to as much as $3,500.
To avoid this, Apple has decided to source all its iPhones from India instead.
By shifting production to India, Apple aims to avoid most of the tariffs that would raise prices for consumers.
The company is working with Foxconn, a major manufacturing partner, to set up operations in India.
This way, Apple can continue to provide its products at more reasonable prices while navigating the challenges posed by tariffs.
Training for new manufacturing techniques
Recently, Apple announced plans to implement training for humanoid robots in its factories.
This is part of an effort to modernize the assembly process.
While much of the production is currently in China, the goal is to have a significant portion of iPhones made in India.
Analysts predict that over 60 million iPhones sold in the U.S. by 2026 will come from India.
To maintain inventory levels during this transition, Apple has already shipped around 600 tons of goods, which is roughly equivalent to 1.5 million iPhones, to the U.S.
This move helps Apple ensure that there are enough devices available for customers while production shifts occur.
Despite some smartphones being exempt from the heaviest tariffs, Apple will still be subject to a base rate of 20% on goods imported from China.
This ongoing tariff will raise costs for the company and could impact pricing for consumers.
Investment in American manufacturing
Even though Apple has invested $500 billion in American industry, there are no significant plans to bring production back to the U.S.
Many experts believe that moving production to the U.S. would not be practical or sustainable for Apple.
The costs associated with American labor and manufacturing may make it impossible to keep prices reasonable for consumers.
This shift in production also raises questions about future Apple products.
For instance, customers are eager to see new innovations, like a potential folding iPhone.
If Apple can successfully move production to India, it may help keep prices stable for upcoming releases.