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Post Reply: Apple Aims to Shift iPhone Production to India Amid US-China Trade Tensions - FT

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on April 25, 2025, 6:09 am</div><div id="pl-5069" class="panel-layout">
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<p dir="ltr" data-pm-slice="1 1 []">In a significant shift driven by escalating US-China trade tensions, Apple has announced plans to manufacture all iPhones sold in the United States at its facilities in India. This strategic move, revealed on April 25, 2025, aligns with the Indian government’s Production-Linked Incentive (PLI) scheme, which has bolstered the country’s electronics manufacturing ecosystem. Apple’s decision is expected to leverage India’s growing production capacity, with the company already assembling 80% of its global iPhone output in the country. The transition aims to mitigate risks associated with US tariffs on Chinese imports, which have intensified under recent trade policies. By 2026, Apple projects that its Indian factories, primarily operated by partners like Foxconn and Tata Electronics, will produce 100% of US-bound iPhones, up from the current 30%. This shift is anticipated to create over 200,000 jobs in India’s tech sector, reinforcing its position as a global manufacturing hub. Additionally, Apple’s move supports its supply chain diversification strategy, reducing reliance on China, where geopolitical uncertainties have disrupted operations. The PLI scheme’s incentives, including tax breaks and subsidies, have attracted investments exceeding $20 billion, enabling India to export $15 billion worth of iPhones annually. However, challenges remain, such as ensuring a robust local supplier base and addressing infrastructure gaps. Industry analysts view this as a pivotal moment for India’s economy, potentially elevating its share in global electronics exports, while Apple strengthens its resilience against trade war volatility.</p>

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Post Reply: Apple Aims to Shift iPhone Production to India Amid US-China Trade Tensions - FT

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