Apple Says Most US-bound iPhones: Apple has confirmed a drastic change in its production plan. Declaring that the majority of the iPhones that are being sold in the US are no longer manufactured in China. This change is primarily driven by escalating trade wars between the US and China. As well as tariff policies already implemented by former US President Donald Trump. Since Apple is diversifying its supply china. India was one of the prime beneficiaries of such a shift.
Donald Trump, in his tenure as president, put tremendous tariffs on Chinese imports to help minimize Chinese reliance on manufacturing. These tariffs were up to 145% on some items and added more economic strain to companies such as Apple. Smartphones were at first excluded, but a 20% tariff was levied on Chinese-produced iPhones that are shipped into the US, forcing Apple to reconsider using Chinese-based manufacturing hubs.
The repeated trade wars between the US and China have rendered it increasingly tough for business to run smoothly in the country. Unpredictable government behavior and unpredictable tariff volatility have forced Apple to scout out fresh locations for manufacturing. CEO Tim Cook has just said that tariffs would cost Apple $900 million in one quarter, hastening the company’s drive to diversify manufacturing locations away from China.
India has become a crucial part of Apple’s worldwide supply chain, manufacturing most of the iPhones being sold in the US today. Apple has entered strategic alliances with Indian manufacturers like Foxconn and Tata Electronics to drive manufacturing expansion. India is also benefited by a lower reverse tariff of 26%, as compared to China.
Also Read: Apple Spends the Most on This iPhone Part: Can You Guess What?
Apple’s move to diversify iPhone production out of China is a sign of Trump’s trade policy and continuous US-China economic tensions. India as a manufacturing hub, the transition offers new employment and industrial growth opportunities. As Apple expands more in India, the country will become a global leader in phone production.
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