How Donald Trump’s return as US President means this $30 billion ‘iPhone opportunity’ for India – Times of India

FILE PHOTO: Apple CEO Tim Cook gestures during the inauguration of India’s first Apple retail store in Mumbai, India, April 18, 2023. REUTERS/Francis Mascarenhas/File Photo To Match Special Report FOXCONN-APPLE/INDIA-WOMEN

Apple could double its iPhone manufacturing in India with Donald Trump returning to the White House, potentially shifting production worth over $30 billion annually from China within two years, reports ET citing industry experts and officials.

Trump’s China tariffs could reshape iPhone supply chain

The iPhone maker’s strategic pivot hinges on Trump’s campaign promise to impose steep tariffs of 60-100% on Chinese imports, The Economic Times reported, citing unnamed government officials. Apple currently manufactures iPhones worth $15-16 billion annually in India.
During his previous presidency, Trump had levied tariffs up to 25% on Chinese goods. A similar approach in his second term could accelerate Apple’s manufacturing migration to India, potentially creating 200,000 new jobs and increasing India’s share in iPhone production from 12-14% to over 26%.

Premium iPhone production could drive growth

“With growing premiumisation trends and demand for expensive iPhones globally, supported by iPhone Pro series now being manufactured in India, the overall production value has the potential to go well beyond $30 billion a year,” Neil Shah, vice president at Counterpoint Research, told ET.
However, experts caution that Indian suppliers needs to address cost inefficiencies and policy uncertainties to prevent Apple from choosing alternative manufacturing destinations like Vietnam.
The company currently partners with three manufacturers in India – Foxconn, Pegatron, and Tata Electronics – with approximately 70% of local production being exported globally. The Tata Group is already expanding its iPhone manufacturing footprint with a second facility in Hosur, Tamil Nadu, expected to employ up to 40,000 workers.
Apple’s momentum in India is already evident, with exports of India-manufactured iPhones reaching nearly $6 billion in the six months through September 2024, marking a 30% year-over-year increase.
The company also started manufacturing its more premium iPhone models, the iPhone 16 Pro and iPhone 16 Pro Max, starting this year, alongside the regular iPhone 16 and iPhone 16 Plus models. The Infromation reports that Apple is also planning on assembling the iPhone 17 in the country, and has already started early manufacturing tests with one of its partner in India.