Apple has been dealing with a tariff situation imposed by the Trump administration in recent days, and it has stirred up the company’s supply chain to a greater degree. While the company is seeking amendments in the percentages, Chinese suppliers have taken the most hit with a massive 125 percent reciprocal tax. The U.S. government wants Apple to move production of its products to the United States, which is one of the reasons why a hefty tax was put in place. It is now being reported that the iPhone manufacturer Foxconn has invested a massive $1.5 billion into India to bolster production away from China.
Apple is shifting iPhone production to India as Foxconn invests $1.5 billion amid rising tariffs on China
Bloomberg reports that in order to move production away from China, the iPhone manufacturer has invested a whopping $1.5 billion in India. Foxconn has been actively expanding its production facilities for iPhone manufacturing, and the investment was seen in a stock exchange filing. In an attempt to move away from China, the supplier is also expanding its footprint in the United States.
Apple is forced to move its production away from China with heavy import taxes right around the curb, and Foxconn’s decision to move its production could be extremely important for what’s to come. Even though the U.S. government has imposed a tax on imports from China, India also faces the same fate. However, the taxes on imports from India are far less than those of China, making it an emerging market for suppliers to step in and set a footing in the region.
Apple has already begun iPhone manufacturing in India, with the company assembling over $22 billion worth of units in the region in the last 12 months. The number was 60 percent higher than the previous year, which only goes on to show that the company is heavily invested in increasing its presence on Indian soil. Foxconn is not the only manufacturer to have secured a spot in India, but Tata Electronics and Pegatron also operate their facilities in the region for iPhone manufacturing. By 2026, Apple aims to manufacture most of the iPhones in India that will be sold in the United States.
However, the higher-end iPhone models that are slated to launch this year or the next are expected to be manufactured in China due to a more complex design. Moreover, China has the upper hand when it comes to manufacturing technology and Apple would not risk it for its 20th anniversary iPhone. It remains to be seen when Apple will completely ship away from China for iPhone manufacturing.
