Apple is scrambling to avoid a 54% price bomb on iPhones—and its plan hinges on India.
Here’s the crisis:
- Trump just slapped a 54% tariff on Chinese imports, where 90% of iPhones are made 28.
- If Apple passes costs to buyers, a 1,599iPhone16ProMaxcouldhit1,599iPhone16ProMaxcouldhit2,300 8.
- India offers a loophole: With only a 26% U.S. tariff (vs. China’s 54%), shifting production there could save billions 13.
Apple’s emergency moves:
- Ramping up Indian production
- Already on track to make 25M iPhones in India this year (10M for locals, 15M for export) [citation: user-provided summary].
- Foxconn and Tata are expanding factories in Tamil Nadu to meet demand 8.
- Begging for exemptions
- Apple’s lobbying the White House for a China tariff waiver like it got in 2019 2.
- So far, no luck—Trump’s playing hardball 4.
- Absorbing costs (for now)
- Analysts say Apple might eat 10-15% of the tariff hit to avoid shocking buyers 10.
- But long-term? Prices will rise unless production shifts faster 8.
The catch:
- India can’t replace China overnight. Supply chains there are still maturing 8.
- Vietnamese factories (another Apple hub) face a 46% U.S. tariff—worse than India’s 13.
- Even with Indian tariffs, iPhones could still cost 100–100–200 more in 2025 10.
Apple’s betting big on India to dodge Trump’s tariffs. But with no quick fixes, your next iPhone might come with a hefty “Made in America” premium—one way or another.
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