Apple Eyes Major iPhone Production Boost in India Amid Potential US Tariffs on China
Updated: Nov 11, 2024 06:01:51pm
Apple Eyes Major iPhone Production Boost in India Amid Potential US Tariffs on China
New Delhi, Nov 11 (KNN) In a bid to hedge against escalating US-China trade tensions, Apple Inc. may significantly boost its iPhone production in India, potentially reaching over USD 30 billion annually within the next two years, according to a report by The ET.
This comes as former US President Donald Trump, now campaigning to re-enter office, reiterates his stance on imposing tariffs of up to 100 per cent on Chinese imports.
Currently, Apple’s Indian production output is valued at about USD 15-16 billion each year.
The proposed tariffs on Chinese goods could compel Apple to accelerate its manufacturing shift to India, which already accounts for around 12-14 per cent of the company’s global iPhone production, primarily through partnerships with Foxconn, Pegatron, and Tata Electronics.
Experts speculate this shift could create as many as 200,000 new jobs in India and elevate the country’s role to over 26 per cent of global iPhone production.
This surge in production could deepen Indo-US economic relations, with the electronics sector—particularly Apple’s iPhone manufacturing—reaping substantial benefits.
While the Indian electronics industry stands to gain, logistical challenges remain as India scales up for large-scale exports. Tata Group’s forthcoming facility in Tamil Nadu, expected to employ 40,000 workers, is poised to play a critical role in meeting Apple’s expanded production targets, as the plant is set to begin operations within months.
According to Neil Shah, Vice-President at Counterpoint Research, rising global demand for Apple’s high-end models, including the iPhone Pro series, could drive production growth further if Trump’s tariffs materialise.
Yet, experts caution that Apple’s ambitious goals hinge on India’s ability to overcome cost inefficiencies and policy ambiguities.
The government’s Production Linked Incentive (PLI) scheme has supported Apple’s initial shift, but sustained reforms will be vital to keep production from migrating to other attractive markets, such as Vietnam.
As Apple continues its expansion, the move is seen as both a strategic response to geopolitical risks and a significant step toward establishing India as a major global manufacturing hub for premium electronics.
(KNN Bureau)