Priyanka Tiwari
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Suspense crime, Digital Desk : India has now dethroned China to become the primary exporter of iPhones to the United States, as shipments in April increased by 76% year-on-year. This significant increase comes as Apple has been working on easing its dependency on China because of new trade policies enacted by President Trump.
Exports Soaring Due To Strategic Realignment
Around 3 million iPhones produced in India were exported to the US in April alone. On the other hand, China's exports of iPhones to the US plummeted by 76% to just 900,000 units. This is the first month on record where India has consistently surpassed China in supplying Apple smartphones for avaliable in the US market.
Effect Of The New Tariffs
The shift in the trade situation follows Trump's policy of “reciprocal tariff” on April 2nd, which instituted a 30% export tax on iPhones from China. This is in contrast to other nations like India that are subject to only 10% tariffs on iPhone imports. This shift has changed the game for India as a low-cost manufacturing hub for Apple products intended for the US market.
Apple's Case of Long-Term Planning in Action
Apple has branched out its manufacturing footprint during the pandemic, and the attempts are being built on under geopolitical pressure alongside tariff changes. Omdia research manager Le Xuan Chiew argues that Apple’s stockpiling of Indian-made iPhones in April was indicative of the company’s strategy planning well in advance mitigating adverse impacts on global supply chains due to ongoing trade wars.
Tim Cook Focuses on India Again
Cook’s outlook has hardly changed since the electronics tariff exemption. The company is going through with its plans US consumers will still be able to purchase iPhones in June. In his statement in May, Cook highlighted that a significant proportion of iPhones sold in the US during June quarter will be sourced from India, further indicating relocation of production plans are underway.
Remaining Gaps in Indian Manufacturing
While the numbers articulated in April are encouraging, forecasts are growing cautious. The current state of manufacturing in India is still progressing, but according to the experts, the Indian industry is nowhere close to meeting the average US demand of 20 million iPhones per quarter with commercially available capacity likely not available until 2026.
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