New Delhi24 minutes ago
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Apple will create an iPhone in India even after the threat of US President Donald Trump. According to media reports, the company will benefit greatly from iPhone products in India. That is why the company will not take any decision under any political pressure.
A top government official associated with the case said that, he is confident that the company will pay out profits despite any pressure from the Apple Trump administration. According to reports, the company is focusing more on the talent available in India and the facilities available for business here.
Trump announced 25% tariff on Apple
Donald Trump said on Friday that the manufacturing of the iPhone sold in the US should be not in India or any other country, but in the US itself. He has told Apple’s CEO Tim Cook that if Apple does not make an iPhone in America, then the company will be imposed at least 25% tariff.
Trump has threatened to impose 25% tariff to social media platform Truth Apple.
15% iPhones being built in India right now At present, Apple does not make smartphones in America. Its more iPhones are made in China, while in India now about 15% of the total production of Apple is formed, which is about 40 million units annually.
At the same time, Apple’s CEO Tim Cook had told in an interview recently that 50% of iPhones sold in the American market are being made in India. Cook said that India will become the country of origin of iPhones sold in the US in the April-June quarter. He informed that other products like Airpods, Apple Watch are also being made mostly in Vietnam.
Apple’s focus on India, 5 points
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems such as Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it is not right to depend more in one area. In this context, India is proving to be a low risk option for Apple.
- Government incentive: India’s Make in India Initiative and Production Linked Initiative (PLI) schemes provide financial assistance to companies to increase local manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs compared to China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Partner like Foxconn, training employees to meet the production needs and expanding facilities like $ 2.7 billion (₹ 23,139 crore) plant in Karnataka.
Trump does not want Apple’s product to be made in India
US President Donald Trump does not want Apple’s product to be built in India. Last week, Trump told the company’s CEO Tim Cook that there is no need to install factories in India. India can take care of itself.
Trump gave information about this conversation with Apple CEO on Thursday (15 May) in the program with business leaders in Doha, the capital of Qatar. He had said that Apple will now have to increase production in America.
Despite this, Apple’s largest contract manufacturer Foxconn has invested $ 1.49 billion (about ₹ 12,700 crore) in India. Foxconn has invested this in Tamil Nadu’s Yuzhan Technology (India) Private Limited in the last 5 days through its Singapore unit.
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