‘Way better to take 25% tariff hit…': Apple exports 2.9 million iPhones from India to US despite Trump's pressure; China sees big fall
Apple's suppliers delivered 2.9 million iPhones from India to the United States in April. (AI image)
US President Donald Trump's directive to Tim Cook to shift iPhones production away from India doesn't seem to be deterring Apple from shipping a higher number of smartphones from the country.
Apple's suppliers delivered 2.9 million iPhones from India to the United States in April, showing a 76% year-on-year increase, according to Omdia research firm.
This aligns with Apple's strategy to fulfil US demand from India, despite Trump's increasing demands for local manufacturing. Apple anticipates comparable figures for May, as the company continues its production diversification away from China.
According to an ET report, Omdia said that Chinese iPhone exports to the US declined by 76% to 900,000 units in April, compared to 3.7 million units the previous year.
Counterpoint Research's preliminary assessments indicate Indian iPhone exports to the US in April ranged between 2.9-3 million units.
Apple iPhones from India
The export figures for April showed a decrease from March levels, when the company worked intensively to meet the April 2 deadline for US retaliatory tariffs targeting countries with trade surpluses, particularly affecting China.
Industry specialists indicated that Apple's transition towards India continues to gain momentum.
They explained that the reduced export volume in April aligned with typical seasonal patterns, noting that shipments traditionally decrease during the April-June period, before new model launches in the September quarter.
Trump's 25% tariff threat to Apple
Apple faces a significant challenge following President Trump's recent warning about implementing a 25% tariff on imported iPhones if they are not manufactured within US borders.
However, manufacturing iPhones within the United States would likely result in a dramatic price increase, with industry specialists suggesting that Pro models could exceed $3,000 per unit, compared to the current price of $1,119, due to increased labour expenses and intricate supply chain management for component procurement.
"In terms of profitability, it's way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US," Ming-Chi Kuo, Apple analyst at TF Securities, Hong Kong told the financial daily.
Also Read |
'Don't want you building in India': Donald Trump's clear message to Apple CEO Tim Cook to 'Make in US'; says India can take care of themselves
In a recent development, Foxconn (Hon Hai), Apple's manufacturing associate, declared a new £1.5 billion investment to enhance its Chennai operations for increased production.
Foxconn has also established a new unit in Karnataka, set to begin iPhone deliveries from June.
In parallel, Tata Electronics, which ranks as Apple's second-largest iPhone manufacturer in India, is increasing production capabilities at its Hosur site for both enclosures and comprehensive iPhone assembly. The company has also secured controlling interest in Pegatron's facility, Apple's third supplier in the country.
Industry observers suggest that India's production capabilities may not expand rapidly enough to completely satisfy US demand for Apple products.
Data from Omdia indicates that whilst the US market demands approximately 20 million iPhones quarterly, India's projected capacity will fulfil only about 80% of this requirement by 2026.
Also Read |
Why Apple won't find it easy to move iPhone production from India to US
According to industry experts, India's primary challenge lies not in technical capabilities but in achieving necessary production volumes.
Omdia notes that with India now producing premium Pro and Pro Max iPhone variants, significant progress has been made in workforce development.
Industry observers note that Apple is carefully managing relationships across its three crucial markets – China, US and India – which serve both as consumer bases and essential components of its production network.
"China remains deeply entrenched in Apple's manufacturing ecosystem, home to over 200 key suppliers. Shifting assembly to the US is not a logical move. It would mean attempting to relocate a tightly interwoven supply chain," said Sanyam Chaurasia, analyst at Canalys (now part of Omdia).
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
11 minutes ago
- India Today
Pak PM admits country went around with begging bowl, says allies no more expect it
Pakistani Prime Minister Shehbaz Sharif, in a stark admission of his country's financial woes, said even close allies no longer expect Islamabad to roam the world with a "begging bowl." Amid rising tensions with India, Sharif added that both he and Army chief Field Marshal General Asim Munir were unwilling to shoulder the weight of economic dependency any Pakistani military personnel in Quetta on Saturday, the provincial capital of restive Balochistan, Sharif called China a "time-tested" friend and Saudi Arabia a "trustworthy" and "reliable" ally. advertisement"China is the most time-tested friend of Pakistan. Saudi Arabia is one of the most reliable and trustworthy friends of Pakistan. This applies to Turkey, Qatar and the UAE," he said. "But let me point out abundantly here that they expect us now to engage them in trade, commerce, innovation, research and development, education and health, investments, and profitable ventures mutually. They no longer expect us to go there with a begging bowl," he stressed that Pakistan should fully utilise natural and human resources to tide over its economic challenges, adding that he and Field Marshal Asim Munir no longer want to carry the burden of dependency on their shoulders."I am the last person, along with Field Marshal Asim Munir, to carry this (economic) burden any more on our shoulders. The Almighty has blessed us with natural and human resources. We must make full use of them and deploy them for these very profitable ventures," he further Pakistani Prime Minister's remarks came at a time when its allies like Turkey have sided with Islamabad and condemned India's strikes on terror camps in the neighbouring May 7, India launched Operation Sindoor, military strikes on nine terror bases in Pakistan and Pakistan-Occupied Kashmir (POK) in retaliation for the April 22 Pahalgam terror attack, which killed 26 people. The strikes killed 100 terrorists from the Jaish-e-Mohammed, Lashkar-e-Taiba and Sindoor was launched in response to the Pahalgam terror attack on April 22, which killed 26 people, mostly then sought to escalate the situation by launching a barrage of drones and missiles at Indian cities and military installations, but they were shot down by India's S-400 air defence system. India then launched a fierce counter-attack, striking 11 Pakistani military sites across the country, before both sides agreed to cease all the International Monetary Fund (IMF) gave cash-strapped Pakistan a fresh bailout of USD 1 billion despite strong objections from India. The bailout is part of a support package under the Extended Fund Facility (EFF), approved in September 2024, which totals USD 7 billion. Till now, Pakistan has received USD 2.1 billion through this had recently asked the IMF to reconsider its decision to help Pakistan financially, arguing that the country continues to support terrorism and allows such groups to use its land to plan and carry out attacks against its response to New Delhi's objections, the IMF said that the financial support it gave to Islamabad was part of an earlier agreement and followed normal InMust Watch IN THIS STORY#Pakistan#India-Pakistan#Jammu and Kashmir
Time of India
16 minutes ago
- Time of India
NDMC finalises plan to build clock tower at Talkatora roundabout
New Delhi: New Delhi Municipal Council has finalised the design and prepared cost estimates for constructing a clock tower at Talkatora Roundabout, following approval from Delhi Urban Art Commission last month. NDMC vice-chairman Kuljeet Singh Chahal announced on Sunday that the clock tower would be a prominent architectural addition aimed at enhancing the visual identity of Lutyens' Delhi. The tower is planned to stand approximately 27 metres tall, featuring a 2-metre diameter clock. It will have an octagonal shape and be built using reinforced cement concrete, finished with a layer of clay bricks to give it a classic appearance. The area surrounding the tower will be landscaped with granite flooring, steel railings and marble decorations to further elevate the site's aesthetic appeal. The total cost of the project is estimated at Rs 1.3 crore, with the target for completion set for Dec 2025. The proposal may be presented in an upcoming council meeting for final approval. Chahal noted that many municipal bodies across the country featured iconic clock towers that reflected the heritage and architectural character of their cities. NDMC, he said, was now set to create its own landmark structure of similar cultural and symbolic value. He emphasised that the new tower would not only serve as a visual attraction for Lutyens' Delhi but also act as a symbolic gateway into NDMC area from neighbouring MCD regions, such as Rajendra Nagar and Karol Bagh. For maintenance purposes, internal stairs will be built within the structure and safety railings will be installed around its base, which will also feature marble embellishments. According to Chahal, the initiative aligns with the national mission to beautify Indian cities and protect their cultural heritage. Prior to design finalisation, NDMC commissioned a soil test at the proposed site through a private agency, which confirmed the location's suitability for supporting the structure. Since the project required changes to the existing site layout, NDMC submitted an updated proposal to DUAC, including technical details of the "Ghantaghar" plan. DUAC granted its consent in April after reviewing the revised submission. The plan to build a clock tower was initiated after LG VK Saxena's inspection of the NDMC area in April. Historically, New Delhi Town Hall once had a clock tower on top of its headquarters, but it was demolished in the 1980s to make way for the current NDMC building. The new tower at Talkatora Roundabout seeks to revive that legacy with a fresh architectural landmark in the heart of the city. . MSID:: 121547967 413 |
&w=3840&q=100)
Business Standard
21 minutes ago
- Business Standard
'India needs to dodge trade diversion risk due to steel tariff challenges'
India needs to be watchful of any increased risk of trade diversion into the country due to changing global tariffs, top steel industry executives said reacting to the tariff-related announcement by the US. Major steel players JSW Steel and AMNS India said there is a need to implement necessary trade measures proactively as every country is protecting their industry. US President Donald Trump on Friday told Pennsylvania steelworkers that he would double the tariff on steel imports to 50 per cent to protect their industry, a dramatic hike that could further increase prices for a metal used to make housing, autos and other goods. In a post later on his Truth Social platform, he said aluminum tariffs would also be doubled to 50 per cent, and both tariff hikes would go into effect Wednesday. "We need to implement necessary trade measures proactively and in time," JSW Steel Joint MD and CEO Jayant Acharya told PTI. Sharing his views, the industry leader said there is likely to be increased risk of trade diversion into India due to changing global tariffs. India is vulnerable given its strong domestic demand. Ranjan Dhar, Director & Vice President, Sales and Marketing, AMNS India said,"We hope more protection will come for domestic industry. Every country is protecting their industry. India should also do that as long as India focuses on protecting its industry from low price imports." The industry need to be watchful on imports, there is no doubt about that, he said. Earlier, Tata Steel CEO T V Narendran had said not imposing the protection measures for a prolonged period of time can impact the industry's investment plans, and impact on cash flows can adversely impact capex decisions. In FY25, steel imports rose 9.2 per cent to 10.5 million tonne, while exports declined sharply by 27 per cent to 6.3 million tonne, resulting in India remaining a net importer for the second year in a row. The government introduced a 12 per cent provisional safeguard duty on flat products from April 21, 2025, to help ensure a level playing field for local producers. JSW Steel and AMNS India are among top 5 steel producing companies in India with an annual production capacity of around 35 million tonne (MT), and 9 MT, respectively. Tata Steel recently completed the phase II expansion project of 5 MT at Kalinganagar in Odisha, taking its overall capacity to 26.1 million tonne in the country. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
