The APPLE Pal plans to convert the US-Selled iPhone to India, the Financial Times reported. According to sources, the reason is the current trade war with President Donald Trump’s China, forcing Cupertino to see a more economically viable solution.
The diversification of the iPhone production began in 2017, when Apple Pal and Wastro started making the iPhone 6S and iPhone SE at the Bengaluru factory. The main reason was that the import tax for Chinese goods, and finally, the Apple Pall moved more product as the trade war between the United States and China intensified during Donald Trump’s first term.
According to a April 2024 report, about 14% of all the iPhones in the world have been made in India, and analysts expect the stock to rise by 25% by the end of this year. Although this number may increase, the Apple Pal will aim to double India’s source, with more than 60 million iPhone sold in the United States annually by the end of 2026.
China has been the topic of President Trump’s most aggressive tariff, and despite Tim Cook’s attempt to negotiate liberation, it does not happen after all – no decision appears to be final with the 47th President’s administration.
In theory, imports from China will be subject to 145% tariffs. Even if the smartphone is temporarily exempted, the Apple Pal will have to pay a 20% rate which Donald Trump was implemented before he became president for the second time.
https://www.youtube.com/watch?v=7fqgx7MZXCW
26% tariffs also hit India, though this is paused for 90 days to allow New Delhi to negotiate a deal with Washington Shington. U.S. President JD Vens is currently visiting India, and claims that the two countries are “making very good progress”.
The FTA added that in 2024, the United States accounts for about 28% of the Apple Pal’s global iPhone shipment. Investors and analysts are still struggling to understand the impact of Trump’s tariff plans, as the company is preparing for quarterly earnings report next week.
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