Apple may say that most iPhones sold in the US are now assembled in India, but that doesn’t necessarily mean Apple has reduced its reliance on China. Patrick McGee, who literally wrote the book Apple in ChinaHe explains.
Over the last two quarters, Apple CEO Tim Cook has done just that male iPhones sold in the US are sourced from India. Naturally, this move allows Apple to avoid Trump’s annoying tariffs on products exported from China and sold in the United States.
In response to a technically correct but contextually misleading chart about iPhone sourcing, McGee explains why we shouldn’t start thinking of India as the new China when it comes to iPhone production after final assembly.
In short, it is about assembly, which is done in India, but this is just a workaround to Apple’s tariff problem. McGee writes:
But these iPhones rely on a supply chain centered in China as much as any iPhone I’ve ever carried. The depth and breadth of the supply chain has not changed. Maybe, and we hope it will, but that could take years, cost tens of billions of dollars, and cause unwanted friction between Apple and its consumers in Beijing and China.
So, yes, India is the “source,” but only after 1,000 parts (per iPhone) are machined, fabricated, laser-welded, molded, shaped, drilled, and assembled through a highly complex, efficient, and expensive network of factories in China that employs up to three million workers annually. After sub-assembly, it is exported to India, for final assembly and packaging, a process involving tens of thousands of workers.
Eliminating risks is in the future. At present, iPhones “made” in India aim to avoid Modi’s tariffs on China (for the Indian market) and avoid Trump’s tariffs on China (for the US market).
The workaround seems to have worked for now. However, the possibility of tariffs being imposed on products exported from India to the United States remains a risk. Just today, President Trump Announce On social media, the US will raise tariffs on India over another issue. In response, India called the proposed tariffs “unjustified and unreasonable.”
Meanwhile, Apple is expected to raise the base price of several iPhone 17 models when the new lineup is unveiled next month.
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