Trump's tariff on India to do little to upset iPhone manufacturing plans
Apple has realigned its India exports to almost exclusively serve the US market, with nearly all the US$3.2 billion-worth iPhones exported by Foxconn from India going to the US between March and May.
It's 'too early to say' if recent events or future changes in Trump's stance will alter Apple's manufacturing plans in India, an industry executive familiar with Apple's strategy said. 'These plans are made with a longer window.'
Trump on Wednesday imposed a 25 per cent tariff on goods imported from the country, effective on Friday, a move that sent jitters across India Inc, though some view it as a negotiation tactic.
For Apple, India is now central to its strategy of diversifying manufacturing beyond China, where geopolitical pressures have pushed it to consider alternative bases.
India supplied 71 per cent of all iPhones sold in the US market between April and June, up from 31 per cent a year earlier, driven by a corresponding decline in shipments from China, according to Counterpoint Research.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Despite the newly announced tariffs, manufacturing iPhones in India would continue to remain cost-competitive, with expenses lower than when Apple began production there eight years ago, narrowing the cost gap with China, analysts said.
Factors like growing local component availability, federal government incentives, and wages nearly half those in China have positioned India as one of the top two iPhone-producing countries, alongside China.
'Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved. It is expected to be business as usual, especially with a resilient supply chain like Apple,' said Tarun Pathak, a research director at Counterpoint.
Trump's ire
Trump has repeatedly targeted Apple for making US-sold iPhones outside the country by threats including company-specific tariffs, but hurdles like high costs, technological shortcomings, and legal issues have stood in the way.
In May, he recalled telling Apple CEO Tim Cook: 'we put up with all the plants you built in China for years ... we are not interested in you building in India, India can take care of themselves'.
Apple would rather absorb the higher costs for iPhones sold in the US than to slam the brakes on its India expansion, said Faisal Kawoosa, chief analyst at Indian research firm Techarc.
'Given that sales in the US are largely operator-driven and sold as part of plans, it might mean adding a few more US dollars to monthly plans rather than giving an upfront blow to consumers'. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
40 minutes ago
- Straits Times
China and Russia start joint drills in Sea of Japan
Sign up now: Get ST's newsletters delivered to your inbox The 'Joint Sea-2025' exercises kicked off in waters near the Russian port of Vladivostok and would last for three days. BEIJING - China and Russia began joint naval drills in the Sea of Japan, also known as East Sea, on Aug 3 as they seek to reinforce their partnership and counterbalance what they see as a US-led global order. Alongside economic and political ties, Moscow and Beijing have strengthened their military cooperation in recent years, and their relations have deepened since Russia invaded Ukraine in February 2022. The 'Joint Sea-2025' exercises kicked off in waters near the Russian port of Vladivostok and would last for three days, China's defence ministry said in a statement on Aug 3. The two sides will hold 'submarine rescue, joint anti-submarine, air defence and anti-missile operations, and maritime combat'. Four Chinese vessels, including guided-missile destroyers Shaoxing and Urumqi, are participating in the exercises alongside Russian ships, the ministry said. After the drills, the two countries will conduct naval patrols in 'relevant waters of the Pacific'. China and Russia have carried out annual drills for several years, with the 'Joint Sea' exercises beginning in 2012. Top stories Swipe. Select. Stay informed. Singapore LTA, Singapore bus operators reviewing Malaysia's request to start services from JB at 4am Singapore Despite bag checks and warnings, young partygoers continue to vape in clubs in Singapore Singapore Ong Beng Seng to plead guilty on Aug 4, more than 2 years after trip to Qatar with Iswaran Singapore Now flying solo, Acres CEO Kalaivanan Balakrishnan presses ahead with wildlife rescue efforts Opinion The charm – and drawbacks – of living in a time warp in Singapore Business Decoupling to save on tax? You may lose right to property if ties go awry Singapore NDP 2025: Veteran Red Lion says each leap 'feels like 5km run' Singapore Lessons learnt from Singapore's love-hate relationship with e-scooters 2024's drills were held along China's southern coast. The Chinese defence ministry said on Aug 1 that 2025's exercises were aimed at 'further deepening the comprehensive strategic partnership' of the two countries. China has never denounced Russia's more than three-year war nor called for it to withdraw its troops, and many of Ukraine's allies, including the United States, believe that Beijing has provided support to Moscow. China insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine. AFP
Business Times
40 minutes ago
- Business Times
South-East Asian firms test Hong Kong waters amid IPO surge
[SINGAPORE] South-east Asian companies have mostly sat out Hong Kong's 2025 listing boom , but a cautious revival may be under way with four more initial public offerings (IPOs) from the region in the pipeline, according to the Hong Kong Stock Exchange (HKEX). Johnson Chui, HKEX's head of issuer services, told The Business Times that four South-east Asian companies are preparing to list, though he did not name them. If these plans proceed, they would mark the highest annual number of South-east Asian IPOs in Hong Kong since 2020, signalling a slow rebound after a prolonged slump. The pandemic and unfavourable macroeconomic conditions drove a steep decline in regional interest, with just three South-east Asian IPOs recorded between 2021 and 2024, compared with more than 65 in the five years prior. The new listings could include that of Singapore-headquartered apparel retailer Shein. In July, it filed for an IPO on HKEX after its plans to debut in New York and London were stymied by regulatory pressures . Chui told BT that the exchange continues to seek opportunities from the south. 'HKEX is deeply committed to strengthening ties with Asean markets,' he said, noting that the bourse frequently conducts roadshows in the region. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In the first half of 2025, three regional companies listed on HKEX: Indonesia-based Nanshan Aluminium, Singapore biotech firm Mirxes , and Thai coconut water-maker IFBH . They accounted for 7 per cent of the bourse's 43 IPOs so far this year, as overall activity rebounded sharply. In H1, IPOs and cross-listings on HKEX totalled 210 deals, raising US$49.2 billion – more than nine times the US$5.3 billion raised a year ago, based on data from S&P Global Market Intelligence. The 43 IPOs in H1 2025 marked a sharp jump from the 29 in the same period in 2024, and the 27 in H1 2023. 'Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies,' said Jon Withaar, head of Asia special situations at Pictet Asset Management. Much of HKEX's fundraising surge has stemmed from the 175 dual-listed companies that also trade on the mainland's A-shares market. For these firms, Hong Kong's deep capital markets and currency fungibility provide greater flexibility. Mainland markets The prospect of expanding into the Chinese market has prompted some South-east Asian companies to make the leap. Listing on HKEX could lead to greater recognition among investors across Greater China, or the leverage of brand familiarity for fundraising. Thailand's IFBH, whose coconut water brand IF commands a significant market share in China, cited desires to grow its business in the wider region following its Hong Kong debut in June. ' Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies. ' — Jon Withaar, head of Asia special situations at Pictet Asset Management In addition, Hong Kong's efforts to attract listings from key sectors could draw the attention of Greater China companies. Specialist technology firms in China have flocked to HKEX as the bourse offered pathways to lessen compliance burdens for applications within the sector. This may be why cancer diagnostics startup Mirxes chose HKEX over the Singapore Exchange (SGX) for its IPO in May, citing better valuations and a more savvy investor pool. This is despite the company's links with Singapore government bodies such as the Agency for Science, Technology and Research, and the Economic Development Board. Homecoming bias Admittedly, South-east Asia's own IPO market has been relatively quiet, with fundraising reaching a decade-long low in 2024 . Fresh listings in H1 2025 have also underperformed compared to the year before, a Deloitte report noted. Local exchanges have remained more attractive than HKEX for new listings, with fundraising flexibility and policy incentives laying the foundations for domestic players to access funds. 'Major Asean members have their own currencies and domestic stock markets to fund business growth,' a Bloomberg Intelligence report noted in July. 'The bias remains for South-east Asian companies to list on their local exchanges in 'homecomings',' said Pictet's Withaar, pointing out that government-linked investment companies and sovereign wealth funds in countries such as Malaysia, Indonesia and Singapore often support large listings in the region. Such government involvement is expected to persist in South-east Asia's capital markets. 'Companies increasingly favour local exchanges over international ones due to regulatory support and growing domestic investor interest,' Stephen Bates, partner and head of deal advisory at KPMG in Singapore, told BT last month. As a result, little of Hong Kong's listing activity in the last few years has come from South-east Asia, Withaar noted. 'These are markets for Chinese and Hong Kong investors, who can understand Chinese businesses much more than (those) in Thailand, Vietnam or Malaysia.' Cross-listings Notably, HKEX may still find additional reach in dual-primary or secondary-listed companies which already trade on Asean exchanges. The bourse may already have signalled a strategic shift, which HKEX chief executive Bonnie Chan hinted at in a June interview: 'I am now beginning to realise that our sweet spot may not be private companies.' 'We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market,' she added. Since 2022, international issuers have been included in HKEX's Stock Connect programme, which allows mainland Chinese investors to trade and settle shares listed on Hong Kong boards. Access to these investors may be why companies such as Malaysia-listed Capital A, the parent company of low-cost carrier AirAsia, is now seeking a secondary listing on the Hong Kong bourse. ' I am now beginning to realise that our sweet spot may not be private companies. We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market. ' — Bonnie Chan, HKEX chief executive As part of efforts to woo more South-east Asian firms, HKEX has included several exchanges from the region in its list of recognised stock exchanges – allowing companies already listed on these boards to pursue secondary listings in Hong Kong without being subject to additional regulatory requirements. The bourse added the Indonesia Stock Exchange to this list in 2023, and the Stock Exchange of Thailand in March this year. The list already includes SGX, but not Malaysia's or Vietnam's main stock exchanges. Seventeen companies from South-east Asia –- including 16 from Singapore and one from Malaysia – are currently trading on both HKEX and their domestic bourses, Bloomberg data indicated. Even so, access to additional fundraising is far from a given for South-east Asian companies. SGX-listed real estate player LHN discovered this as it voluntarily delisted from the Hong Kong bourse in July, citing compliance costs and low trading volumes. Liquidity concerns, the company's board said, had limited its opportunities to conduct secondary equity fundraising on HKEX. Pictet's Withaar also warned that dealmaking in Hong Kong still suffers from deep cyclicality, where listing booms come and go. 'Just 18 months ago, there were miniscule levels of activity in the Hong Kong capital markets,' he said. 'This is unlike the US, which has a very deep and liquid market. There is always a steady stream of capital markets transactions.' When it comes to overseas listings, Wall Street exchanges Nasdaq and the New York Stock Exchange remain the gold standard for foreign companies due to better liquidity and valuations, he added. Compared to the three South-east Asian listings on HKEX, six regional companies have already gone public on Nasdaq in 2025, all of which are headquartered in Singapore.
Straits Times
2 hours ago
- Straits Times
How Trump-vetted scientists are trying to shred the climate consensus
Sign up now: Get ST's newsletters delivered to your inbox Climate experts say it will hobble the country's efforts to rein in rising temperatures. NEW YORK – A new report from the US Department of Energy says projections of future global warming are exaggerated, while benefits from higher levels of carbon dioxide (CO2) such as more productive farms are overlooked. It concludes, at odds with the scientific mainstream, that policies to reduce greenhouse gas emissions risk doing more harm than good. Released on July 28, the report is part of an effort by the Trump administration to try to end the US government's authority to regulate greenhouse gases. It's the output of scientists known for contradicting the consensus embodied in volumes of research by the United Nations Intergovernmental Panel on Climate Change (IPCC), whose work is approved by virtually every nation. Publishing an alternate approach to the science of global warming on the same day that the Environmental Protection Agency (EPA) said it plans to revoke the endangerment finding – a determination that greenhouse gases harm public health and welfare – marks a step up in the administration's war on regulations. Since its adoption in 2009, the endangerment finding has become the bedrock of many US environmental rules. EPA Administrator Lee Zeldin said repealing the finding would 'end US$1 trillion or more in hidden taxes on American businesses and families.' Climate experts say it will hobble the country's efforts to rein in rising temperatures and lessen the impacts, such as more intense storms, droughts and wildfires. The federal government's own research shows climate-fuelled extreme weather is already causing US$150 billion (S$193.2 billion) in losses a year in the US. In its proposed rule to nix the finding, the EPA references the Energy Department's report more than two dozen times. Energy Secretary Chris Wright wrote in the report's foreword that he had commissioned it and selected the authors to form a working group. The agency's support for the contrarian research stands in contrast to the broad rollback of other climate work under President Donald Trump. Since his inauguration in January 2025, hundreds of scientists have been dismissed from agencies , including some who had focused on climate change. The EPA recently moved to shutter its main scientific research arm, which has been a crucial tool for policymaking. The US cancelled a landmark climate change report , the sixth National Climate Assessment, and has taken down numerous webpages on climate science. Some of those were related to previous National Climate Assessments – studies that hundreds of researchers spent years painstakingly compiling. The new report's authors include Steven Koonin, a fellow at Stanford's Hoover Institution who wrote a 2021 booking arguing that climate science is 'unsettled'; Roy Spencer, a University of Alabama in Huntsville scientist and senior fellow at the climate-denying group Cornwall Alliance; and Judith Curry, a climatologist formerly of Georgia Tech who testified to a Senate committee in 2023 that climate change has been mischaracterised as a crisis. An Energy Department spokesman said the report's authors 'represent diverse viewpoints and political backgrounds and are all well-respected and highly credentialed individuals.' The spokesman added that the report 'was reviewed internally by a group of DOE scientific researchers and policy experts from the Office of Science and National Labs,' and that there will be a 30-day comment period for the public to weigh in. Ann Carlson, an environmental law professor at the University of California at Los Angeles, said the report presents a series of arguments the administration can draw on to contend 'public health and welfare is not endangered by emissions that come from the auto sector, from the trucking sector, from the electricity sector.' Rather than denying climate change is occurring, Prof Carlson said, 'What they're trying to say instead is, 'Well, it's not so bad. It's really expensive to mitigate. And that expense actually harms people more than anything we could do' to slow it down. That's in keeping with past comments by members of Trump's cabinet that have downplayed global warming or public concern about it. Prof Carlson said the report is 'a wholesale assault' on climate science and previous policy. Zeke Hausfather, the climate lead at Stripe Inc and a research scientist at nonprofit Berkeley Earth, has contributed to major US and international climate reports. He described the Energy Department publication as 'scattershot' and said it 'would not pass muster in any traditional scientific peer review process'. That the administration released it after taking down webpages hosting 'the actual, congressionally mandated National Climate Assessments,' he said, is 'a farce'. The report is a 'package of punches' against the scientific consensus that previously grounded US climate policy, and against that policy itself, said Jennifer Jacquet, a professor of environmental science and policy at the University of Miami. 'It's really surreal to think that's where we are in 2025.' The EPA will have to go through the lengthy federal rulemaking process to try to abolish the endangerment finding. If the proposed rule is finalised, legal challenges are inevitable. The issue could end up before the Supreme Court, which ruled in 2007's Massachusetts v EPA that greenhouse gases were pollutants the EPA could regulate under the Clean Air Act. Getting the court, which now has a conservative supermajority, to overturn the 2007 decision may be the endgame, said Prof Carlson. The effort would be risky but could succeed, she said. 'I think on every front, the arguments that the [EPA] administrator is going to make – based on the DOE report – are extremely weak,' said Prof Carlson. 'But we also have a court that's very hostile to environmental regulation.' BLOOMBERG
