iPhone Production in India Could Double Due to Donald Trump's Bigger Tariff Proposals: Report

In recent years, Apple's production strategy in India has significantly improved thanks to its plans to expand manufacturing operations beyond China. Apple still relies on China for the bulk of its manufacturing and sales but several factors like the US-China trade tensions played a key role in boosting production in India. A new report suggests that Apple could double its iPhone production in India if the US imposes tariffs on Chinese imports. The Cupertino-based company is likely to increase its iPhone production in India to over $30 billion annually if the newly elected US President Donald Trump decides to impose heavy tariffs on Chinese imports.

Trump's Potential Tariff Hike Likely to Benefit India

Economic Times citing officials and industry experts reports that Apple could double iPhone production in India to more than $30 billion annually over the next two years if new US President Donald Trump carries out his threat of imposing hefty tariffs on imports from China. Apple currently manufactures devices worth approximately $15-16 billion (roughly Rs. 1,30,000 crore to Rs. 1,36,000 crore) in India.

Trump had threatened to impose tariffs of 60-100 percent on goods imported from China during his election campaigns. This could prompt Apple to shift its predictions to India. In his first term, Trump imposed tariffs on Chinese imports and analysts believe that Trump's return could further affect Indo-US relations. While some areas of India may face challenges, the electronics sector especially iPhone production will reportedly benefit from this move.

If Apple expands its iPhone production in India as anticipated, India's share in global iPhone manufacturing will surge over 26 percent in the coming years, up from the current 12 to 14 percent. The fresh capacity potentially create 2,00,000 jobs, said the report.

The report quotes Neil Shah, vice-president at technology researcher Counterpoint Research, as saying that overall iPhone production value in India has the potential to go well beyond $30 billion a year in the coming couple of years. The shift in iPhone manufacturing would depend on whether the Indian government can make deep reforms to address cost inefficiencies and policy uncertainties due to taxes and tariffs to ensure that the additional production does not shift from China to other countries like Vietnam, adds the report.

Over the past few years, Apple has notably increased its supplier base in India, partnering with major tech firms and contract manufacturers, including Foxconn, Pegatron and Wistron. The iPhone maker is reportedly conducting early manufacturing work for the iPhone 17 at an unspecified factory in India.