iPhone Production in India Reaches $22 Billion Last Year
Exports from India to the U.S. Surge After Reciprocal Tariff Announcement
As the Donald Trump administration in the United States wages a 'tariff war' with China, American global company Apple has significantly increased iPhone production in India over the past year.
According to Bloomberg News on the 13th (local time), an official stated that the total value of iPhones produced by Apple in India from April last year to last month reached $22 billion (approximately 31 trillion won, based on factory shipment price).
This represents an increase of nearly 60% compared to the same period the previous year, raising India's share of global iPhone production to about 20%.
Additionally, according to the Indian Ministry of Technology, iPhones produced in India worth 1.5 trillion rupees (approximately 25 trillion won) were exported abroad during this period.
Officials reported that iPhone exports from India to the United States surged especially after President Trump announced a policy of imposing reciprocal tariffs in February.
According to Reuters, starting last month, Apple mobilized six chartered planes to urgently airlift about 1.5 million iPhones, weighing 600 tons, from India to the United States to avoid reciprocal tariffs.
Apple is reportedly planning to further increase the supply of iPhones produced in India to the U.S. market.
As President Trump focuses ultra-high tariffs on China, Apple aims to reduce tariff burdens by supplying products made in India, where tariff rates are relatively lower, to the U.S.
However, on the 12th local time, the Trump administration excluded smartphones and computers from the list of items subject to reciprocal tariffs.
As a result, the additional 125% reciprocal tariff imposed by the U.S. on China will not apply to iPhones produced in China, but the 20% tariff imposed separately on China is expected to remain.
Consequently, India-produced iPhones, exempt from smartphone reciprocal tariffs, have become more price-competitive in the U.S. market compared to Chinese products subject to a 20% tariff.
Apple is striving to reduce its production share in China, but with about 200 suppliers and a high dependence on China, it is difficult to relocate production to other countries in the short term.
Bloomberg observed that although the Trump administration has clearly expressed its intention for iPhones to be produced in the U.S., the possibility of Apple relocating production to the U.S. is low due to reasons such as lack of production facilities and workforce.
Apple began producing older iPhone models in India in 2017, but after experiencing severe production disruptions at Chinese factories during the COVID-19 pandemic, it has been trying to diversify iPhone production locations to India.
Most iPhones produced in India are assembled at Foxconn factories located in southern India, with Indian companies such as Tata Electronics also serving as major suppliers.
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