New Delhi: Tech giant Apple is planning to increase its iPhone exports from India to the United States in an effort to avoid the high tariffs placed on Chinese goods.
The US tech giant is considering this move as a temporary solution to reduce the rising cost of importing products from China, according to a report by The Wall Street Journal.
This comes after the US government recently imposed a 34 per cent tariff on Chinese imports, in addition to a 20 per cent duty announced earlier.
In retaliation, China also slapped a 34 per cent tariff on US goods which further worsened the global trade tensions.
US President Donald Trump has warned that even more tariffs — up to 50 per cent — could be imposed if China doesn’t agree to back down.
Amid this trade war, Washington has imposed only a 26 per cent tariff on goods coming from India, which is much lower compared to those on China and other Asian countries.
This makes it more cost-effective for Apple and other companies to export their products from India. However, shifting production from China to India won’t be easy, the report said.
Apple’s iPhone accounts for about half of the company’s total revenue, and its production is still heavily reliant on China. Investors are concerned about the risks involved in shifting such a critical part of Apple’s supply chain.
In the past three days, Apple’s shares have dropped by more than 19 per cent which was the worst three-day performance for the company in nearly 25 years, the report noted.
If the US tariffs on Chinese goods continue, Apple could face an additional $300 in hardware costs for each iPhone. At present, the hardware cost of an iPhone is around $550, while the retail price is $1,100.
In India, iPhones are manufactured by Foxconn and Tata Group. “To support the increased exports to the US, Apple will need to expand its supply chain and production capacity in India,” the report mentioned.
Meanwhile, Apple exported iPhones worth around Rs 19,000 crore in January this year alone from India, which was its highest ever in a single month. Compared to the same period last year, iPhone exports from India have grown by more than 30 per cent.
The firm achieved milestone by exporting iPhones worth over Rs 1 lakh crore from India in just 10 months of the previous financial year (April 2024 to January 2025), according to industry data.
This record performance has been made possible due to the government’s production-linked incentive (PLI) scheme, which is encouraging large-scale manufacturing in the country.
(IANS)
