Apple is planning to increase iPhone shipments from India in order to offset the cost of President Trump’s China tariffs, amid concerns that the price of the popular smartphone could reach over $2,000. The move is meant to be temporary while Apple attempts to secure an exemption from the tariffs, as it had done during Trump’s first term. Chinese imports faced a 54% tariff, while India dealt with a 26% rate on its products.
With the current 54% tariff potentially adding over $1,000 to the price of the newest iPhones, the cost could reach $2,300, according to experts. Apple is expected to produce around 25 million iPhones in India this year, which is about 10 million more than usual. If Apple chooses to redirect all India-made iPhones to the US, it would cover approximately 50% of demand for the year. President Trump’s “Liberation Day” tariffs are seen as a way to boost domestic manufacturing, but critics argue that this move could inflate prices.
While most of the iPhone’s components are made in China, Apple has been assembling more of the devices in India in recent years, allowing the company to label them as being made in India. However, primary production still remains in China, where manufacturing partners like Foxconn are based. On the other hand, assembly of other Apple products like iPads, AirPods, and the Apple Watch has been increased in Vietnam, which also faced tariffs.
In response to the tariffs, Apple has pledged to invest $500 billion in the US economy, creating 20,000 new jobs and building a new manufacturing facility in Houston focused on producing AI servers for devices like the iPhone. President Trump has threatened to impose an additional 50% tariff on China if they do not lower their retaliatory tariff on the US. The tariffs are part of Trump’s efforts to push companies towards creating a more robust manufacturing base in the US, although critics argue that this could lead to higher prices for consumers.
As Apple navigates the impact of the tariffs, the company is looking for ways to mitigate the potential increase in iPhone prices. The temporary shift in iPhone shipments from India is one strategy being employed to offset the cost of the tariffs, while Apple works towards securing an exemption. The long-term implications of the tariffs on the smartphone industry and consumer prices remain to be seen, as the US and China continue to negotiate their trade relationship and economic policies.
