Apple has stated that India will play a significant role in producing iPhones for the US market, as a measure to reduce the impact of tariffs imposed by the Trump administration. Tim Cook indicated that the majority of iPhones sold in the US could soon be made in India, while other products like iPads and Macs will be sourced from Vietnam. However, experts caution about the challenges of this transformation, including higher production costs and potential supply chain vulnerabilities, which necessitate a careful policy approach to maximize the benefits of this shift.
Apple has announced that a majority of iPhones sold in the US will bear India as their country of origin as part of its strategic shift.
The decision to shift production is aimed at mitigating the impact of tariffs by the US government on Appleâs supply chains and profit margins.
While this move offers significant opportunities, it also brings challenges, notably regarding cost competitiveness, labor market conditions, and supply chain integrity.
Analyst Lekha Chakraborty emphasized that iPhone production costs in India are 5-10% higher due to expensive components and less efficient manufacturing processes.
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