Most iPhones for the US are now made in India

Apple has significantly changed its production strategy, and now most of the iPhones sold in the US are assembled in India rather than China. This move helps the company avoid tariffs on Chinese goods imported to the United States.

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India has already become Apple's second largest production centre. Today, it accounts for more than 20% of global iPhone production and has surpassed China in terms of supplying devices to the US market. Apple plans to achieve 50% of iPhone production in India over the next few years.

The company's main motivation is to reduce its dependence on Chinese production. However, this change now also brings significant benefits due to trade restrictions imposed on Chinese goods.

However, there are two challenges that may limit the effectiveness of this transition. Firstly, when a new iPhone line is launched, such as the iPhone 17, it is unlikely that the surge in demand can be fully covered by production in India. Second, the exemption of smartphones from import tariffs may be temporary. Donald Trump's administration has already imposed a 25% duty on goods from India, and the smartphone exemption may be cancelled in the future.

Apple is currently absorbing the costs associated with the tariffs to maintain competitive prices, but in the long run, this could lead to higher prices for its products in the US market.

Source: 9to5Mac