Business Industry

Apple Shifts iPhone Production to India

Apple CEO Tim Cook has confirmed that most of the iPhones sold in the United States during the last quarter were assembled in India. This marks a significant shift in Apple’s global manufacturing strategy, showing the tech giant’s growing confidence in India’s production capabilities.

Vietnam Now Major Hub for Other Apple Devices

While India has taken over the bulk of iPhone production for the U.S. market, Apple continues to rely on Vietnam for assembling other key products. MacBooks, iPads, and Apple Watches sold in the U.S. are now largely being made in Vietnam. This change is part of Apple’s wider efforts to diversify its supply chain beyond China.

U.S. Tariffs a Key Factor in Shift

The production shift comes amid global trade uncertainties and potential tariffs on imports. While some electronics may face higher duties, smartphones like the iPhone are currently exempt. This exemption helps Apple maintain competitive pricing while reducing dependence on Chinese manufacturing.

India Sees Surge in Smartphone Exports

India has become the largest supplier of smartphones to the United States, overtaking China. Reports indicate that India now accounts for more than 40% of U.S. smartphone imports, while China’s share has dropped below 30%. This trend reflects the growing importance of India as a global manufacturing base.

Apple’s Future Strategy

Apple’s expansion in India includes partnerships with firms like Foxconn and Tata. Analysts believe that India could account for nearly 40% of global iPhone production by 2026. While China still handles a significant portion of Apple’s international orders, the company’s shift to India appears to be long-term and strategic.

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