U.S. President Donald Trump doubled the tariff rate charged on products imported into the United States from India on Wednesday, but the increase excludes iPhones produced in the country.
That’s a major relief for Apple, as it shifted production to India to escape Trump tariffs on products brought in from China.
The news pushed Apple’s share price up 5% on Wednesday.
We’ll have to stop thinking of the iPhone as a product made in China — nearly all Apple’s handsets for sale in the United States are reportedly now assembled in India.
It’s part of Apple’s effort to reduce paying the tariffs President Donald Trump places on most products imported into the U.S., especially ones that come from China.
President Donald Trump’s new import tariffs will hit Apple hard. The president slapped all major manufacturing countries that Apple operates in with heavy import tariffs Wednesday in a bid to reshape international trade.
“It’s our declaration of economic independence,” Trump said during a speech at the White House announcing the tariffs. “Today we are standing up for the American worker and we are finally putting America first.”
This move undermines Apple’s efforts in recent years to diversify its supply chain away from China. The White House says the reciprocal tariffs will go into effect on April 9.
Apple’s efforts to move iPhone assembly to India and Vietnam are reportedly being hampered by the Chinese government.
The iPhone-maker wants to increase the number of countries in which its products are assembled amidst a worsening U.S./China trade war.
Apple continued its impressive run in its next big growth market, India, shipping more than 9 million iPhones from January to September 2024. This represents 35% year-over-year growth for iPhone shipments in the country.
The company also increased its lead over Samsung, the previous leader in India’s smartphone market.
A Tata Electronics plant in Chennai, India, that makes components for iPhones reportedly caught fire on Saturday, halting production.
It’s not clear yet how this will affect iPhone assembly in the country. It’s certainly not good news for Apple’s efforts to become less dependent on China.
Apple manufacturer Foxconn wants to expand its operations in India and assemble iPads in the country, potentially at its Sriperumbudur facility in Tamil Nadu.
Currently, Apple contractors Foxconn, Pegatron and Tata Group only assemble iPhones in India.
Apple CEO Tim Cook told the president of Indonesia Wednesday the company will “look at” manufacturing in the country, according to reports.
Such a move would make for another expansion of Apple’s push to diversify manufacturing sites outside of China, as it has done in Vietnam and India.
Everyone knows iPhone is made in China, right? Well, yes and no. A new report indicates that as many as 14% of Apple handsets are actually produced in India.
It’s part of Apple’s plan to diversify where its products are assembled to reduce its dependence on China.
Apple manufacturing partner Foxconn reportedly already started assembling the upcoming iPhone 15 in India. This marks the first time a yet-to-launch iPhone is being produced outside of China.
Last year, iPhone 14 production started in India within a month of the phone going on sale.
The first company to assemble iPhone in India is reportedly getting out of the business. Wistron is selling the plant where it puts together Apple handsets to Tata Group, an Indian multinational based in Mumbai.
At the same time, Foxconn and Pegatron continue to grow their commitments to manufacturing iPhones in India.
A government minister is “confident” that Apple will double or even triple the amount of money it has invested in India in the coming years. It’s expanding iPhone assembly in the subcontinent, and production of other devices there is expected to begin soon.
The comments come a day after Apple CEO Tim Cook met with India’s Prime Minister Narendra Modi.
Apple CEO Tim Cook met with India’s Prime Minister Narendra Modi on Wednesday. It’s part of a busy agenda for the executive, including opening two Apple stores — the first in the subcontinent. But that’s just a small part of his activities as the executive traveled around to highlight how Apple products are being used in India.
Cook posted tweets from all the many events and meetings.
Apple’s first retail store in India opened its doors to shoppers Tuesday, and CEO Tim Cook showed up to celebrate. Apple BKC — housed in an energy-efficient structure with some stunning architectural details — is located inside Jio World Drive, a huge shopping complex in Mumbai, Maharashtra.
The Indian store opening marks an important milestone for Apple, as it seeks to expand its retail and manufacturing presence in the world’s most populous country.
Apple is finally ready to open its first retail store in India on April 18. And it will open its second store in the country just two days later.
The openings come after years of delay as Apple tried to establish a direct retail presence in the Asian country.
After recent problems in China, Apple is ramping up iPhone assembly in India. The number of iOS handsets assembled in that country will reportedly triple in the coming years.
Previous reports have also indicated that Apple is putting a much greater emphasis on making iPhones in India.
5G service launched in India in October, but no iPhone supports the high-speed wireless networking standard… yet. Apple plans to change that in December.
And those who are part of the iOS beta program can get access even earlier.
Apple TV+ offered a first look at upcoming drama series Shantaram this week in the form of a photo of star Charlie Hunnam (Son of Anarchy) in character, plus a rundown of the cast and plot of the adventure-romance, set to premiere October 14.
And speaking of drama and adventure, the production ran into big trouble on the way to becoming a reality.
Foxconn will begin shipping the iPhone 14 from its assembly plant in India almost as soon as its Chinese plant starts shipping Apple’s next smartphone, according to an industry analyst. This is apparently a sign that Apple is decreasing its dependence on China.
And Foxconn is reportedly building up its assembly capacity in India.
The first Apple store in India won’t open until 2023. Apple has been trying to open the retail location since 2019, but it’s been beset with delays.
The Mumbai store is supposed to be part of an important shift in the way the company does business in India. Another store in the country is also on the way.
Apple is now manufacturing the iPhone 13 in India through supply-chain partner Foxconn following the phone’s launch last September.
The move will allow the Cupertino company to save on customs and import taxes that it otherwise has to pay for importing and selling the phones in the country.
Apple’s long struggle to open a retail store in India isn’t over yet. The iPhone-maker had planned to throw open the doors of a brick-and-mortar location in Mumbai in 2021, but it’s now reportedly been delayed by COVID-19.
Customs officials have seized around 80 iPhones being smuggled through Rajiv Gandhi International Airport in Hyderabad, India. The devices included various iPhone 12 models, including the iPhone 12 Pro and iPhone 12 Pro Max. They also arrested two passengers who owned the checked-in luggage, and another person reportedly involved in the smuggling.
The smuggling was almost certainly to avoid paying import duty on the devices. Import duties on the iPhone in India were increased from 10 to 15% in late 2017.
Apple has confirmed that its Apple Music Lossless and Spatial Audio features will be coming to India. The features debuted elsewhere for users in May at no added cost.
Apple’s Support Twitter page notes that “We appreciate your interest. Dolby Atmos on Apple Music will be coming to India soon. Keep an eye out here.” Meanwhile, the Apple Music page for India also makes mention of the feature. No official launch date has yet been announced.
The coronavirus pandemic might be winding down in the United States, but it’s still wreaking havoc in other parts of the world. And that includes hammering Apple’s supply chain.