Apple Reportedly Plans to Redirect iPhone Units From India to the US Amidst Ongoing Tariff Troubles

Apple is working on sending more iPhone units produced in India to the US as the company looks to minimise the impact of recently announced US tariffs on China, according to a report. The company is also said to be seeking an exemption from tariffs on Chinese goods, introduced by US President Donald Trump last week. Apple heavily relies on China to produce the iPhone, which is its best-selling hardware product, but the company has been taking steps to diversify its supply chain in recent years.

Apple Could Redirect iPhone Units Made in India to the US

Citing sources familiar with the company's plans, The Wall Street Journal reports that Apple is looking to ship more iPhone units from India to the US. The Cupertino company has been producing millions of its smartphones in India, and is said to be looking to cushion the blow from the latest tariffs on Chinese goods, which were raised to 54 percent by President Trump on April 2.

According to the report, the move to ship more iPhone units from India to the US would allow the company to meet half of the demand for its handsets in the US in 2025 — if it chooses to send all units produced in India. The US announced a 26 percent tariff on imports from India last week, which is considerably lower than China.

The company was granted an exemption from the tariffs during President Trump's first term, and it is said to be seeking a similar exemption. Under the tariffs, the cost of shipping iPhone units to the US from China could increase the cost of an iPhone 16 Pro to $850 (roughly Rs. 73,300), up from $550 (roughly Rs. 47,400). as per the report.

Apple heavily relies on China to produce the iPhone, and the company's shares have dropped by 19 percent over the past three days, wiping out nearly $640 billion (roughly Rs. 55,18,900) in market cap. 

Last month, it was reported that Foxconn has been conducting limited trials of iPhone production at the company's Bengaluru campus, ahead of plans to accelerate production of iPhone models in the country. Apple's Taiwan-based supplier produced 12 million iPhone units in India last year, and is said to be working to bring that number to 25 million to 30 million smartphones.