Due to tension with China after US President Donald Trump imposed heavy duty on China, iPhone manufacturer Apple is planning to transfer 25 percent of the total global iPhone production capacity from China to India by 2026.
By the end of FY 2024-25, India’s stake in total global iPhone production will increase to 20 percent, which was 14 percent in FY 2023-24. The percentage of iPhone production in India has increased from zero to 20 percent in four years since the Government of India launched the Production Promotion (PLI) scheme.
Currently, 80 percent of the total iPhone production in the world is produced in China and this production is used to meet the demand for Chinese market as well as for export to other countries of the world. However, given the current trade war between the US and China, Apple, a company that manufactures this phone, is now considering building more in India, as India is in a more profitable position than in China due to the trade war. According to experts, Apple is currently planning to move only 25 percent of its production to India, but in future Apple can transfer more production to India. Although the United States postponed the implementation of mutual tariffs on electronics imports on 12 April, the US still imposes 20% duty on imports from China. This fee was imposed due to the previous China-US trade war. In comparison, zero duty is imposed on imports from India. Due to this, if an iPhone is manufactured in India and exported to the US, the cost price decreases by 20 percent. This has made India an attractive manufacturing place for companies like Apple, which has a major presence in the US market.
How is India in a profitable position compared to China?
The US currently imposes 20% duty on imports of electronics goods manufactured in China, while equipment manufactured in India does not levy any duty.
Apple has started manufacturing iPhone in India after the Government of India announced the PLI scheme for electronics products in 2020.
In 2024-25, the price of the iPhone manufactured by Apple in India was $ 22 billion, out of which 80 percent of the phones were exported.
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