Apple Inc. (NASDAQ: AAPL) is reportedly ramping up iPhone production in India as a temporary workaround to the heightened U.S. tariffs on Chinese imports, the Wall Street Journal reported, citing sources close to the matter.
The move comes in response to the latest tariff escalation under President Donald Trump’s renewed trade agenda, which raised duties on Chinese goods to at least 54%. India, in contrast, faces a comparatively lower tariff rate of 26%, making it a more attractive hub for Apple’s supply chain in the interim.
The iPhone, which contributes nearly 50% of Apple’s total revenue, is predominantly assembled in China. With this heavy dependence, investor concerns have mounted, causing Apple’s stock to plunge 20% over the past three sessions—its worst fall in nearly 25 years.
According to TechInsights, the 54% tariff could increase the hardware cost of an iPhone 16 Pro by approximately $300, pushing its production cost well above $850. Currently, the model retails for $1,100. However, Apple may be able to reduce the burden by sourcing devices from India, where the tariff rate is considerably lower.
While Apple is reportedly seeking an exemption from the new tariffs, similar to the waiver it received during Trump’s previous term, no decision has been made yet. In the meantime, the shift to India is aimed at safeguarding its margins and maintaining market stability.
Trump has also issued a stern warning of additional levies if China does not reverse its retaliatory tariffs announced following the U.S. plan disclosed on April 2.
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