iPhone manufacturing surges as commerce winds shift from China – Firstpost

Apple has sharply accelerated its iPhone manufacturing in India, assembling gadgets price an estimated $22 billion within the 12 months ending March 2025— a 60 per cent soar over the earlier yr. The ramp-up comes amid a deepening shift within the tech large’s international provide chain away from China.

Bloomberg, citing individuals acquainted with the matter, reported that India now accounts for one in each 5 iPhones made globally. The $22 billion determine represents the estimated manufacturing unit gate worth of the gadgets, fairly than their retail pricing.

The lion’s share of this manufacturing comes from Foxconn’s sprawling facility in southern India, whereas Tata Group— now controlling former Wistron and Pegatron operations— has emerged as a essential cog in Apple’s India-based provide chain.

Exports rise amid Trump tariffs

India’s tech minister confirmed earlier this month that Apple exported Rs 1.5 trillion ($17.4 billion) price of iPhones from the nation up to now fiscal yr. Business insiders say shipments to the US picked up noticeably after President Donald Trump introduced “reciprocal” tariffs in February, prompting Apple to fast-track its India exports.

Whereas electronics, together with smartphones, have been exempted from these tariffs in a current announcement, the broader levies on China — now totalling 145 per cent — stay intact. Trump’s separate 20 per cent responsibility on Chinese language imports, aimed toward pressuring Beijing over fentanyl, nonetheless applies.

For Apple, this makes India a comparatively secure harbour. Units made in India at present don’t entice US duties, and analysts anticipate the corporate to more and more depend on its Indian manufacturing strains to serve American customers.

The lengthy street from China

Regardless of the positive factors, Apple stays deeply entangled in China. The corporate relies on roughly 200 suppliers and a extremely built-in ecosystem honed over a long time. Even Apple CEO Tim Cook dinner has acknowledged China’s manufacturing edge.

Whereas Trump has lengthy pushed for home iPhone manufacturing, Apple is unlikely to shift to the US anytime quickly because of an absence of appropriate amenities and expert labour.

A 2022 evaluation by Bloomberg Intelligence projected it will take eight years to shift simply 10 per cent of Apple’s manufacturing in another country: a reminder of how entrenched the Chinese language provide base stays.

Nonetheless, India is proving it might ship. Apple now assembles its full iPhone vary within the nation, together with premium titanium Professional fashions. This enlargement has been aided by Prime Minister Narendra Modi’s Manufacturing-Linked Incentive scheme and contemporary $2.7 billion in subsidies aimed toward electronics and semiconductor manufacturing.

Apple’s India gross sales, principally from iPhones, totalled practically $8 billion within the final fiscal yr. Whereas the corporate nonetheless holds simply 8 per cent of India’s smartphone market, it seems to be betting closely on the nation not simply as a retail vacation spot, however as a pillar of its international manufacturing future.