Strategic Shift to India
Apple plans to import most iPhones sold in the US from India by the end of next year, aiming to double its iPhone output in India to over 80 million units annually.
This move is part of Apple's broader strategy to reduce reliance on China, influenced by factors such as Covid lockdowns, tariffs under Trump, and ongoing geopolitical tensions.
Production and Economic Implications
Apple has already increased its production in India, making 20% of its iPhones there, with plans to escalate this further. Foxconn and Tata are key suppliers, expanding production capacity in India.
Despite higher production costs in India compared to China, Apple's shift is also driven by state subsidies and Modi's ambition to make India a manufacturing hub, alongside strategic moves to navigate US tariffs.