Apple Accelerates iPhone Production in India Amid Tariff Threats
Apple suppliers Foxconn and Tata shipped nearly $2 billion worth of iPhones to the US in March to avoid anticipated tariffs from President Trump. With customs clearance times reduced and expedited cargo services utilized, Apple is ensuring requisite inventory levels. The company aims for 25% of iPhone production in India by 2028 and has announced a $500 billion investment in the US.
In March, Apple suppliers Foxconn and Tata exported nearly $2 billion worth of iPhones to the United States, as reported by Reuters. This significant shipment reflects Apple’s strategy to circumvent potential tariffs imposed by President Donald Trump, ensuring sufficient inventory while maintaining competitive pricing. The shipments comprised approximately 600 tons of various iPhone models, indicating urgency in production and delivery.
Foxconn reportedly exported $1.31 billion worth of iPhones, marking their highest monthly total, which was equal to the combined totals of January and February. The overall Apple exports from India have now reached $5.3 billion this year. Additionally, Tata Electronics contributed significantly, sending goods valued at $612 million in March, predominantly including iPhone models 15 and 16.
The exporting process saw Foxconn utilize the Chennai Air Cargo terminal, with products shipped to various major cities in the US such as Los Angeles and New York. To expedite shipments, Apple successfully advocated for customs clearance times to be reduced from 30 hours to six and employed six cargo jets for this venture, reportedly aimed at mitigating the impact of tariffs.
Tensions escalated in early April when Trump announced a reciprocal 26% tariff on imports from India, but later paused this for 90 days for most trading partners, excluding China. However, smartphones and computers were ultimately exempt from these tariffs, allowing iPhones manufactured in India to avoid the high tariffs imposed on Chinese-made counterparts.
Apple currently operates three assembly plants in India, producing approximately 14% of its iPhones with plans to increase this to 25% by 2028, according to Mint reports. Furthermore, Apple announced a commitment of over $500 billion to invest in the United States over the next four years, reaffirming its dedication to American innovation.
Apple’s strategic shift to ramp up iPhone production in India is a direct response to tariff threats from the Trump administration. By expediting shipments and lobbying for quicker customs processes, Apple aims to secure its market presence while simultaneously planning for a substantial increase in production capacity within India. The company’s future investments in the US underline its commitment to maintaining a balance between international production and domestic innovation.
Original Source: www.livemint.com
Post Comment