Apple to Source More iPhones From India to Offset China Tariff Costs [Report]

Apple is planning to source more iPhones from India to counter the steep tariffs imposed on Chinese goods, according to new report from the WSJ. The move comes as the company navigates a complex trade landscape under President Trump's latest tariff policies, which have significantly raised costs for its flagship product.The strategy serves as a temporary fix while Apple seeks an exemption from the tariffs, a concession CEO Tim Cook secured during Trump's first term. For now, the company views the situation as too volatile to overhaul its China-centric supply chain. Trump's new tariff package, announced recently, sets levies on Chinese goods at a minimum of 54%, with Indian goods facing a 26% rate. On April 7, Trump warned of further increases on China if it doesn't lift its retaliatory duties, introduced after the U.S. tariff plans surfaced on April 2.The iPhone drives roughly half of Apple's revenue, making its production costs a critical concern. With China as the hub of its manufacturing, the company's stock took a hit, dropping 19% over three days—the worst such stretch in nearly 25 years—amid investor fears over tariff exposure. Bank of America analyst Wamsi Mohan noted that Apple was set to produce about 25 million iPhones in India this year before the tariffs emerged. Typically, 10 million of those would stay in India, but redirecting the full output to the U.S. could cover about half of American demand.Continue ReadingShare Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube

Apr 8, 2025 - 00:46

Apple to Source More iPhones From India to Offset China Tariff Costs [Report]

Apple is planning to source more iPhones from India to counter the steep tariffs imposed on Chinese goods, according to new report from the WSJ. The move comes as the company navigates a complex trade landscape under President Trump's latest tariff policies, which have significantly raised costs for its flagship product.

The strategy serves as a temporary fix while Apple seeks an exemption from the tariffs, a concession CEO Tim Cook secured during Trump's first term. For now, the company views the situation as too volatile to overhaul its China-centric supply chain. Trump's new tariff package, announced recently, sets levies on Chinese goods at a minimum of 54%, with Indian goods facing a 26% rate. On April 7, Trump warned of further increases on China if it doesn't lift its retaliatory duties, introduced after the U.S. tariff plans surfaced on April 2.

The iPhone drives roughly half of Apple's revenue, making its production costs a critical concern. With China as the hub of its manufacturing, the company's stock took a hit, dropping 19% over three days—the worst such stretch in nearly 25 years—amid investor fears over tariff exposure. Bank of America analyst Wamsi Mohan noted that Apple was set to produce about 25 million iPhones in India this year before the tariffs emerged. Typically, 10 million of those would stay in India, but redirecting the full output to the U.S. could cover about half of American demand.

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