Apple Doubles Down On India

Ever since United States president Donald Trump upended the global trade balance by using tariffs as an instrument of power, most countries have come to the negotiation table. Except for China, which instituted reciprocal tariffs that kept going up, and they have become so steep that it makes little sense for any trade to happen between the two countries. A big fallout of it has been to the world’s most valuable company, Apple, whose main manufacturing is in China. Its supply chain was badly affected and this is proving to be good news for India.

In the latest investor call, following the release of quarterly numbers, Tim Cook, Apple’s chief executive officer, said that in the immediate future much of the manufacturing of iPhones will shift to India from China. “For the June quarter, we do expect the majority of iPhones sold in the U. S. will have India as their country of origin,” he said.

Apple has been for some time been pivoting towards India. The year 2023 was a major milestone for the company when it opened two retail stores in the country. It is no longer seeing India as a hub for its lower end phones.

Tariffs have added a fillip to this phenomenon. This is because while India too bears the brunt of increased tariffs, it is far lesser than its other hubs like China and Vietnam. In addition, India is close to finalizing a deal with the US government that should substantially reduce tariffs. Until China and the US remain at loggerheads, India has an opportunity to further establish itself as a key manufacturer for Apple.

In the investor call Cook also gave two other pieces of information—India was among the countries where it set a quarterly record and there are new retail stores being opened here later this year.

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