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Takeaways from the Key Takeaways
- Apple reportedly is planning to move the assembly of all iPhones it sells in the U.S. to India, as President Donald Trump's tariffs prompt companies to lower their exposure to China.
- According to Financial Times, the tech company plans to build more than 60,000,000 iPhones sold annually in the U.S. by the end 2026.
- Apple's pivot away from China would mean doubling its iPhone production in India, the report said.
Apple (AAPL), reportedly plans to move all iPhones that it sells in America to India. This is because President Donald Trump’s tariffs are causing companies to reduce their exposure with China.
Trump’s tariffs could have a devastating impact on Apple’s China business, where 90% of Apple hardware is produced. The White House has imposed import duties of 145% on China, with an exception for smartphones and consumer electronics. Beijing has responded by imposing 125% tariffs on U.S. imports.
Financial Times reported Friday that the tech giant intends to build the 60 million iPhones sold annually in the U.S.A. in India by 2026. Apple's pivot away from China would mean doubling its iPhone production in India, the report said.
Citing people familiar with the matter, the FT said that Apple has been increasing production of its products in India in recent years through India's Tata Electronics and Taiwan's Foxconn, but still does most of its iPhone assembly in China. It noted, however, that Apple "is still heavily reliant on Chinese suppliers" for iPhone components. The Wall Street Journal reported earlier this month that Apple intended to send more iPhones from India to the U.S. as a temporary measure while it worked to secure a tariff exemption.
Apple shares are up less than 1% at premarket. They have lost over 15% of their value in the past year.
