The Imposition of Trump Tariff has Led Apple to channel out new locations to produce Apple products at with lesser Tariff penalties. Considering the current situation, Apple has ramped up its production in India to $22 billion in the Fiscal Year Ending March 2025. This has resulted into a 60% jump in production compared from last year- as per Bloomberg. One in five iPhones sold is being manufactured in India, this has showcased a shift away from the traditional Chinese manufacturing as a constant.
Out of the total production, about $17.4 billion worth of iPhones were exported from the country during the recent period. The same has been confirmed by the Indian technology sinister on April 8.
Production Disruptions in China
The Production Boost fills in the vacuum caused by production disruptions in China Caused by harsh COVID lockdowns that affected Apple’s largest manufacturing plant. Majority of Indian iPhone assembly is now being handled by Foxconn technology group in Southern India. Beyond that Tata Group’s electronics division which further acquired Wistron Corp also steps into further production. Pegatron Corp operations is another key component supplier.
Apple’s Further Plans To Boost Production In India
The Announcement of reciprocal Tariffs led to an unprecedented acceleration in the exports of India-Made iPhones. Beyond that, a recent change in the tariff impositions has exempted electronic goods, Including Smartphones, from these tariffs, providing temporary relief from Apple.
The Exemptions are not permanent and a separate 20% duty of Chinese goods remains in place. This would further force Apple to keep its supply chain diversified. For the brand to move away from China permanently just now is pretty difficult. As per the recent estimates it could take eight to years to shift only just 10% of the Apple’s production capacity from China.
India now produces Apple’s complete iPhone range, including Titanium Pro Models. The manufacturing process has been able to expand thanks to state supported subsidies tied to Prime Minister Narendra Modi’s Vision of Transforming India into a manufacturing hub. Incentives of $2.7 billion is further being planned to further initiate electronic component manufacturing in India.
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