Priyanka Tiwari
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Suspense crime, Digital Desk : Apple is now moving around the supply chain by shifting with Foxconn Apple Inc. is looking to move a substantial amount of its iPhone manufacturing capabilities geared for the US Market to India. With use of arms such as Foxconnand aiming to diversify its supply chain operations while trying to reduce the burden China imposes due to increasing tariffs, and some trade disputes with other counties.
Production Arrangement in India
Current Output: Estimates show that India manufactured nearly 40-45 Million units of iPhones for the year 2024, which represents 18-20 percent of the total output by Apple.
Future Projections: Analysts suggest that by the Fiscal Year 2026, the value of iPhones manufactured in the region will reach close to 40 billion dollars, and should ideally see 80 percent of exports going towards the United States.
Key Manufacturing Partners
Foxconn: granny with ghost fire to start work on iPhone 16 and 16e models at their Bengaluru factory. The funding that the plant will get is around $2.6 billion in order to generate 50k jobs. This in turn should help Foxconn and Apple cut costs associated with selling and servicing and servicing the iPhones to US citizens.
Tata Electronics: Tata has made attempts to get into the supply chains of Apple with a new hosur plant which is now undergoing test runs for older generations of iphones.
Export Dynamics
Change in Export Destinations: India made Iphones that were supposed to be shipped to other countries primarily targeted towards the Europe market as well as the UK, Turkey and Japan will now be diverted to America starting within the June Quarter.
Export Volume: By March 2025, it is anticipated that the US will be the next target for the Foxxcon and he will shred out 2 billion dollars worth of these treadmill bound iphones. This in turn will boost the overall spending power of India where experts estimate that the country will provide around 1.3 billion dollars tagged on from Foxxcon.
Economic Impact of Policy
Reduction of Tariff Impacts: Apple seeks to relieve the impact of increasing U.S. tariffs on Chinese goods by increasing production in India.
Growing Local Market: Apple’s production valued at approximately $40 billion would satisfy expansionary US demand by 80%, and 100% of Indian demand, which is growing every quarter.
