Apple has begun an ambitious new initiative to ship new iPhones from India to the United States. Since the end of March the company has flown nearly 600 tonnes of devices – equivalent to around 1.5 million handsets. The tech giant is making moves to double down on its production efforts in India. To keep up with the increasing consumption, they are shooting for a 20% boost at their local facilities.
It currently runs three such major manufacturing facilities across India, but operated by Foxconn and Tata. Most importantly, the plant in Chennai churned out 20 million iPhones last year, including the newest iPhone 15 and 16 series. This oversight, analysts laud, represents Apple’s biggest opportunity. If the company sends all iPhones produced in India to the U.S. market, it might cover close to half of the American demand for a year.
To facilitate this shift, Apple is reportedly chartering cargo flights to transport its products efficiently from Indian manufacturing sites to the U.S. The company’s actions come in light of former President Donald Trump’s threatened tariffs of 26% on Indian imports, which are currently on hold for about three months. Tariff rates for goods imported from China may increase up to 145%. Consequently, Apple has been aggressively looking at different manufacturing channels.
Wedbush Securities analysts have shared alarming warnings about the looming increase in U.S.-made iPhone prices. They added that even an iPhone made entirely in the U.S. would cause its cost to shoot up to $3,500. According to investment bank UBS, that’s an aggressive forecast. It would mean the cost of an entry-level iPhone 16 Pro Max with 256GB of memory would soar from $1,199 to almost $2,000—an increase of more than two-thirds!
These moves by Apple show that they intend to be at the forefront of adapting their business to the rapidly changing world of international trade and tariffs. The firm’s heavy investment in India is expected to help them avoid costly tariffs. This strategy further allows Apple to secure an advantageous position in a highly competitive market.
“If consumers want a $3,500 iPhone we should make them in New Jersey or Texas or another state.”
As the global economy continues to face uncertainties and fluctuating tariff policies, companies like Apple must remain agile and innovative in their production strategies. The tech giant’s investments in Indian manufacturing are a testament to its long-term vision for sustaining growth while navigating complex trade dynamics.
As the global economy continues to face uncertainties and fluctuating tariff policies, companies like Apple must remain agile and innovative in their production strategies. The tech giant’s investments in Indian manufacturing are a testament to its long-term vision for sustaining growth while navigating complex trade dynamics.