As Apple prepares to unveil its iPhone 17 line right this moment (Sept. 9), the corporate is extensively anticipated to introduce its slimmest mannequin but. However that’s not the one change in retailer—this 12 months’s new iPhones may also be manufactured in India from the beginning, underscoring Apple’s push to scale back its dependence on China and sidestep President Donald Trump’s tariffs.
In keeping with Bloomberg, Apple’s 4 iPhone 17 fashions have all been produced in India forward of launch. The corporate is increasing its presence within the South Asian nation by ramping up manufacturing throughout 5 factories, together with these owned by India’s Tata Group and Apple’s longtime provider, Taiwan’s Foxconn.
Lately, Apple has steadily shifted extra of its manufacturing to India in an effort to diversify away from its long-standing reliance on Chinese language manufacturing. This technique accelerated after Trump’s tariffs took purpose at China, which, as of early this 12 months, nonetheless accounted for round 90 p.c of U.S. iPhone imports. In Could, Apple CEO Tim Prepare dinner stated that might now not be the case, outlining plans to shift the vast majority of U.S.-bound iPhone manufacturing to India, with China remaining the first hub for markets exterior the U.S.
The shift is already displaying outcomes. Between April and July, India exported $7.5 billion price of iPhones, in response to Bloomberg, roughly doubling the tempo of exports from the earlier 12 months. Whereas Trump has since imposed 50 p.c tariffs on India, smartphones stay exempt.
Nonetheless, Apple hasn’t escaped the broader prices of Trump’s commerce insurance policies. Throughout the April–June quarter, tariffs value Apple $800 million, Prepare dinner stated. He warned final month that these prices may climb to $1.1 billion within the present quarter, largely on account of tariffs on Chinese language items.
Tim Prepare dinner continues to navigate a fragile relationship with Trump
To remain on Trump’s good aspect, Prepare dinner has spent latest months courting the administration. In February, Apple pledged $500 billion for home initiatives throughout the U.S., and final month added one other $100 billion. The trouble appears to have paid off. Trump introduced on the time that Apple can be exempt from incoming semiconductor tariffs.
Whether or not Apple’s tariff-free path in India will final is unsure. Trump has publicly criticized the corporate’s manufacturing shift, telling Prepare dinner in Could that he needed Apple to construct merchandise within the U.S., not India.
This isn’t Prepare dinner’s first try to navigate Apple by way of tariff battles. Throughout Trump’s first time period, he personally lobbied the President to keep away from new levies. In 2018, Apple dodged 10 p.c tariffs on a few of its hottest merchandise after Prepare dinner’s repeated White Home visits. A 12 months later, the corporate skirted 15 p.c duties on Chinese language client items shortly after Trump toured an Apple meeting plant in Texas.
