Following Trump's crackdown on imports from China and imposing a whopping 145 percent tax on Chinese imports to the US, Apple shifted its production focus to India, which was hit with a 26 percent tariff at the time. As it turns out, India is now strengthening its foothold in Apple's supply chain.
As reported by CNBC, the latest data by Canalys shows that iPhone shipments from India to the United States increased 76 percent in April, reaching 3,000,000 devices. With the rising tensions between the US and China, Apple prefers to import more Indian-made iPhones to the US market. In April, before Trump's tariffs took effect, Apple airlifted 600 tons of iPhones from India to the US to minimize the impact of tariffs.
While India's iPhone shipment to the US is rising, the latest data indicates that China's smartphone export to the US has dropped by 72 percent, hitting a 14-year low at just $700 million. In the meantime, the value of phone component exports from China to India roughly quadrupled over the past year. Chinese manufacturers produce most iPhone parts.
India's rising role in the iPhone supply chain means Apple's strategies for supply chain diversification have paid off, and the Cupertino firm is now less dependent on China for iPhone production. However, Apple might have a bigger brawl with the man sitting in the White House.
Trump has clearly stated that he's unhappy with the production of iPhones in India and has even talked to Apple CEO Tim Cook about it. While Trump insists on moving iPhone production to the US, Apple tends to focus on India, Vietnam, and Brazil as new production hubs.
The US president has also threatened Apple with a 25 percent tariff if the company does not bring iPhone production to the US. Meanwhile, a new report by the New York Times claims Trump's latest tariff threat against Apple is a response to Tim Cook's decision to skip the Middle East trip.
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