Latest news with #Omdia
News18
13 hours ago
- Business
- News18
India Surpasses China, Becomes Largest iPhone Exporter To US Amid Trump's Warning To Apple
Last Updated: Apple's annual iPhone sales surpass 220 million, with major demand coming from the United States, China, and Europe. India became the largest exporter of iPhones to the United States, exporting more than even China. Reportedly, the shipments from Beijing to Washington witnessed a sharp drop by nearly 76 per cent. According to a report by market research firm Omdia, India exported nearly three million iPhones to the US in April. The report comes only a few days after US President Donald Trump warned Tim Cook's apple against building its plants in India. 'Apple has been preparing for this kind of trade disruption for years. The April spike likely reflects strategic stockpiling ahead of tariff hikes," the report quoted Le Xuan Chiew, research manager at Omdia as saying. Earlier on May 5, a CyberMedia Research report said that Apple's iPhone supplies in India grew 25 per cent year-on-year in the March quarter of 2025. In the last few years, India has emerged as an important hub in Apple's global supply chain. According to a report by Reuters, Apple's annual iPhone sales surpass 220 million, with major demand coming from the United States, China, and Europe. '…But I had an understanding with Tim (Cook) that he wouldn't be doing this. He said he's going to India to build plants. I said, 'That's okay to go to India, but you're not going to sell into here without tariffs.' And that's the way it is. We're talking about the iPhone. If they're going to sell it in America, I want it to be built in the United States," Trump had said. First Published: May 30, 2025, 21:37 IST
NDTV
14 hours ago
- Business
- NDTV
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.
Time of India
21 hours ago
- Business
- Time of India
Apple exports 2.9 million iPhones from India to US, China sees big fall: How and why 25% tariff threat may not solve Trump's 'little problem' with India
Apple's iPhone shipments from India to the United States soared 76% in April 2025, reaching 3 million devices as the tech giant accelerates its manufacturing shift away from China, a move that has created what President Donald Trump calls his "little problem" with Apple CEO Tim Cook . The surge comes as Trump pressures Apple to abandon its Indian expansion and bring iPhone production to American soil instead, threatening a 25% tariff on all iPhones not manufactured domestically. Data from technology analyst firm Omdia shows a dramatic reversal in Apple's supply chain, with iPhone shipments from China to the US plummeting 76% to just 900,000 units over the same period. The shift represents Apple's strategic response to Trump's tariff policies, which impose a 30% duty on Chinese-made iPhones while maintaining a baseline 10% rate for other countries including India. The manufacturing pivot gained momentum after Trump's "reciprocal tariffs" implementation in April, prompting Apple to charter emergency cargo flights carrying 600 tons of iPhones from India to beat tariff deadlines. The company secured a "green corridor" arrangement at Chennai airport, slashing customs clearance from 30 hours to six hours. Trump's manufacturing ultimatum creates Apple dilemma President Trump has made Apple's domestic manufacturing a personal priority, revealing he had a "little problem" with CEO Tim Cook during recent discussions. "I told Cook India can take care of themselves, they are doing very well," Trump stated, demanding Apple increase US production instead of expanding in India. The confrontation escalated when Trump posted on Truth Social: "I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S." This pressure campaign echoes Trump's first presidential term, when similar demands failed to materialize significant domestic iPhone production. The challenge stems from fundamental structural issues that Apple founder Steve Jobs identified in 2011, telling President Obama that manufacturing jobs "aren't coming back" due to America's skills gap in precision manufacturing. Industry experts estimate US-made iPhones would cost approximately $3,500 compared to the current $1,000 price tag, requiring Apple to invest $30 billion over three years to relocate just 10% of its supply chain domestically. The iPhone's complex assembly involves 2,700 different parts from 187 suppliers across 28 countries, with less than 5% currently manufactured in the US. India emerges as Apple's manufacturing lifeline Apple's Indian strategy, launched in 2017 with older iPhone models, has evolved into a comprehensive manufacturing base producing the complete iPhone lineup, including premium titanium Pro models. The company now manufactures most iPhones destined for the US market in India, with Bank of America analysts estimating Indian facilities will serve 100% of American demand. The timing proves fortuitous as India faces only a 26% tariff rate, currently paused for 90 days, compared to China's 30% levy. Apple's Indian production capacity is projected to reach 25 million iPhones annually by 2026, sufficient to meet quarterly US demand of 20 million devices. "India remains the only potential manufacturing destination for any player beyond China as the ecosystem is mushrooming," explains Tarun Pathak, Research Director at Counterpoint, citing lower-cost English-speaking skilled labor, world-class software talent, and favorable government policies. Despite Trump's pressure, Indian officials express confidence in Apple's commitment. "There is no change in Apple's investment plans in India," a government source told CNBC-TV18, with Apple having "assured the Indian government" of continued investment. Supply chain reality check against political pressure The manufacturing shift faces obstacles from both Washington and Beijing. Trump's tariff strategy aims to force domestic production, while China reportedly restricts access to high-tech machinery and talent needed for Apple's Indian suppliers. Dan Ives, global head of technology research at Wedbush Securities, calls US iPhone production "a fairy tale," emphasizing that "Apple will continue to plow ahead on the India path." The structural challenges include America's manufacturing skills deficit, with former Apple executives noting that China can "fill multiple football fields" with tooling engineers while the US struggles to fill a single room. Omdia's Le Xuan Chiew warns that India's manufacturing capacity growth may not match demand immediately, noting "It's still too early" for complete supply chain migration. However, India's role as Apple's "life raft" under current tariff conditions appears secure, with the country positioned to strengthen its position as a critical manufacturing hub regardless of political pressures from Washington. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
a day ago
- Business
- Time of India
iPhone exports to US trump last year numbers by 76%
Apple 's vendors shipped 2.9 million iPhones to the United States from India in April, according to market research firm Omdia, a 76% surge year-on-year, as the American tech firm persisted with its plan to meet domestic demand from the South Asian nation despite President Donald Trump's mounting pressure to switch to manufacturing locally. Similar numbers are expected in May, following the company's move to shift production out of China to reduce its overreliance on a single production base. In April, China suffered a commensurate 76% fall in iPhone exports to the US, at 900,000 units, from 3.7 million a year ago, Omdia said. Market tracker Counterpoint Research said its initial estimates peg iPhone exports from India to the US in April to be around 2.9-3 million. The April numbers were, however, lower than in March, when the Cupertino-based company raced to meet the April 2 deadline when the US imposed steep retaliatory tariffs on countries with which it had a trade deficit, with China the hardest hit. Industry executives said that Apple's shift toward India was accelerating and that the lower export volume in April was in line with the weak shipments usually seen in the April-June period, ahead of the launch of new models in the September quarter. Tariff Threat Apple has to contend with President Trump's threat this week of imposing a 25% tariff on iPhones sold in the US that are not made locally. However, producing iPhones in the US is likely to increase sticker prices substantially, with some experts estimating the Pro models to cost well over $3,000 apiece, from $1,119 now, on account of higher labour cost and complex logistics in sourcing the necessary components. '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,' said Ming-Chi Kuo, Apple analyst at TF Securities, Hong Kong. CAPACITY EXPANSION Last week, Apple's manufacturing partner Foxconn (Hon Hai) announced a fresh $1.5 billion investment in expanding its Chennai facility in a bid to strengthen capacity. The manufacturer has also constructed a new facility in Karnataka which will start shipping iPhones from June. Similarly, Tata Electronics, the company's second largest vendor for making iPhones in India, is expanding capacity at its Hosur facility for both enclosures and full-scale iPhone assembly. It has also acquired the majority stake in Pegatron's facility, which is Apple's third supplier in India. Some say India's manufacturing capacity is unlikely to scale up fast enough to fully meet the US demand for Apple. According to Omdia, the US market requires about 20 million iPhones per quarter, but India is expected to meet only about 80% of that demand by 2026. PARTIAL SHIFT LIKELY In the first quarter of 2025, India accounted for 21% of global iPhone shipments, with projections suggesting an increase in its share to 25-26% by the end of the year. The constraint India faces is not technical, but that of scale, as per analysts. With Apple now making even the high-end Pro and Pro Max models in India, much of the workforce training is complete, said Omdia. 'A full transition of US-bound iPhone production to India within a year remains unlikely. A partial shift is more feasible, though it still requires substantial investment in infrastructure and continued reliance on China for key components,' said Sanyam Chaurasia, analyst at Canalys (now part of Omdia). Apple is navigating a complex balancing act among its three most critical markets — China, US and India – not just as customer bases, but as an integral part of its global supply and production network, experts said. '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 Chaurasia. Meanwhile, India has rapidly evolved from a secondary hub to a central pillar of global tech manufacturing, underscored by the sharp increase in iPhone exports from India, he said.
Time of India
a day ago
- Business
- Time of India
‘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
