India Surpasses China, Becomes Largest iPhone Exporter To US: Report
New Delhi:
India has surpassed China to become the largest exporter of iPhones to the United States, according to a report by market research firm Omdia.
Latest estimates showed that nearly three million iPhones manufactured in India were shipped to the US in April. In comparison, phone shipments from China plummeted by a massive 76% to just 900,000 units.
The developments come at a time when Apple faces a significant challenge after US President Donald Trump warned of a 25% tariff on imported iPhones if they are not manufactured in the country.
The report also comes days after US President Donald Trump asked Apple's Tim Cook to stop building plants in India to make devices for the US, pushing the latter to add domestic production as it pivots away from China.
"Apple has been preparing for this kind of trade disruption for years. The April spike likely reflects strategic stockpiling ahead of tariff hikes," Le Xuan Chiew, research manager at Omdia, was quoted as saying in the report.
Apple sells more than 220 million iPhones a year and its biggest markets include the US, China and Europe, Reuters reported. According to IANS, a 'Made in US' Apple iPhone can cost a whopping $3,500 (more than Rs 2,98,000) in the absence of a fully-integrated supply chain in the country. The demand for the phone is around 20 million per quarter at the moment in the country.
India has become a key hub for Apple's global supply chain in recent years. India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.
Experts, however, believe it will take some time for India to meet the demands of the US. Increasing the production in India will help generate employment and jobs and also boost the economy.
Earlier this month, Mr Cook said Apple will source the majority of the iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tax tariffs by the US. Chinese-made iPhones still face a 30% tariff, while Indian ones are taxed at 10% by the Trump administration.
Dan Ives, global head of technology research at Wedbush Securities, told CNN recently that the idea of fully domestic iPhone production is a "fictional tale." Ives also warned that replicating Apple's complex Asian supply chain in the US would result in massive cost increases.
Moreover, it would take Apple at least three years and a massive $30 billion just to shift 10% of its supply chain to the US, as per market watchers.
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