Apple Boosts iPhone Production in India, shifting from China. Explore how this move impacts jobs, exports, and global supply chains, and who stands to gain or lose from this bold strategy.
Apple Boosts iPhone Production in India?
Yes, the on-going conflict between US and China led to moving out the Apple factories from China to India. The trade tensions are high as both the countries making too expensive manufacturing because of high tariffs.
The Financial Times reports the decision will completely shift the production of over 60 million iPhone sold yearly in US to India by the end of 2026.
Why manufacturing cost gets too higher?
The US President Donald Trump new tariff policies hit Chinese imported, as the manufacturing component which are essential for smartphones are costly after the new trade tariffs.
Due to the higher cost, increase the rate on device then it will eventually decline the sales. 20% still hold on the devices entering in the US from China. It led to Apple Boosts iPhone Production in India.
Why Apply production moving in India?
India is negotiating a bilateral trade agreement with Washington. After the Vice President of US JD Vance came India and held a meeting with PM Narendra Modi, India is planning to negotiating a deal with US.
It’s beneficial for both sides to make this agreement. US need a replacement of China, where India sets in. In return, India needs advanced military system to defend.
How Big Is This Shift?
Production Surge:
Apple aims to increase its India production over fivefold to $40 billion in the next 4–5 years, up from $7 billion in the last fiscal year.
Job Creation:
The company’s suppliers and partners are expected to create up to 500,000 jobs in India within three years, up from the current 150,000. Tata Electronics is poised to be the biggest employer in this expansion. As Apple is seeing to expand production in partnership with the Tata electronics and Foxconn.
Export Growth:
iPhone exports from India nearly doubled from $6.27 billion in 2022–23 to $12.1 billion in 2023–24.
Global Share:
India is projected to contribute 17–18% of global iPhone production volume by FY25, up from 12–14% in FY24.
Who gains?
In India, iPhone manufacturing local valuation with get high from the current 11–12% to 15–18%. Additional valuation could benefit the india economy growth and increase the number of jobs.
Apple could survive the risk of geopolitical tension and tariffs by reducing the reliance with China.
Who might lose?
China could loose the employment opportunity, and may slightly hit the economic activity after Apple Boosts iPhone Production in India.
US consumers can face some new challenges like there might be temporary disruptions in product availability, and price adjustment because of new stabilized supply chain.
Read also: NBIM Just Lost $40 Billion—Here’s Why It Matters Globally
Conclusion
Apple’s strategic shift to India is more than a business decision; it’s a reflection of changing global dynamics. While Apple Boosts iPhone Production in India, the move presents challenges, especially for China, it offers substantial opportunities for India and Apple alike. As the tech landscape evolves, such shifts underscore the importance of adaptable and diversified supply chains.
