Apple turns into India to help reduce the Chinese tariff

Apple has increased the number of flights that carry shipments from iPhone from India to the United States after Blitz Donald Trump, where the technology giant is wrestling with one of the biggest threats to its work in years.

In the days after Trump’s “Liberation Day” announced, at least 10 flights were launched from the Chennai International Airport, according to three Indian officials who are familiar with the issue.

Apple depends on deepening its relationship with India to help it face the immediate impact of China’s aggressive definitions of the American president, after it failed to obtain an exemption at the last minute of Washington 104 per cent tax The country that came into effect on Wednesday.

Two Indian officials told the Financial Times that the American technology giant was looking for more investment in the country. “Apple is definitely thinking about making more effort in India,” said one of the officials. Apple refused to comment.

Apple was one of the largest victims of Wall Street in the US President’s tariff – losing about 700 billion dollars in the market value since last week’s ads – with a highlight of the group’s dilemma, after its work was built on advanced manufacturing in China.

Keeping the entire iPhone output in India for the United States will allow it to cover about 30 million iPhone devices that exceed 50 million people that it ships to the United States every year, according to the Bank of America Wamsi Mohan.

Mohan said: “I think they have done some of this work to alleviate some effect in the very short term, but it is clear that it is not a kind of sustainable solutions for any long period of time,” Mohan said.

Apple was quietly growing its business in India, especially since the Koronavirus virus was caused by chaos in supply chains in China, but it still has about 80 percent of the manufacture of smartphones in China, according to Countpoint Research.

On Wednesday, MK Stalin, Prime Minister of Tamil Nadu, met the southern country in India, which includes four of the five iPhone factories in the country, with Andy Prestle, CEO of the main Apple resource Jabil, who last year announced a memorandum of understanding with the state to expand its facilities there.

US -based Jababa did not speak publicly about providing Apple in India. In X, Stalin said the meeting concerned “conducting new commercial investments in Tamil Nadu.”

While Trump targeted India through a 27 percent slope tariff, the country sought to put it by opening talks on a bilateral trade agreement with the United States that Indians hope to see the burden of reduced tariff.

Moreover, India could be benefiting from Trump’s announcement on Wednesday that it stops the additional customs tariffs on a wide range of countries that were ready to negotiate with the United States. Apple shares rose sharply after Trump’s statement on the social truth platform.

But although Apple is greatly inclined to India at the present time, it does not have a supply chain in the country to significantly enhance manufacturing-perceive a long-term tariff in the long run and a disorder either to raise the prices of its advanced electronics or find ways to swallow the additional costs.

Many analysts said they expect any price increase from Apple later in the year, and perhaps with the launch of the new iPhone expected in September, they are likely to be presented worldwide, which spreads the impact of American definitions across consumers worldwide.

They said Apple could apply pricing pressure to its suppliers to pass a portion of the impact of definitions.

Apple is more complicated by Apple is how to move in pushing Trump to the iPhone “Made in America”. The administration has multiplied the idea that Apple can start to manufacture iPhone devices in the United States, which experts say will not be an astronomical cost of the company but also impractical, given the depth of its Chinese relations.

“Trump believes that we have work, and we have the workforce, we have the necessary resources to do this,” said White House press secretary Caroline Levitte on Tuesday, echoing the feelings expressed by the Minister of Trade Howard Lootnick during the weekend.

Apple is likely to cost “several billion” dollars to convert even part of its supply chain to the United States, according to the estimates of the Moran Stanley analysts. Dan Eve, a Wedbush analyst, estimated that it would take three years and 30 billion dollars to transfer only 10 percent of the supply chain from Asia to the United States.

“This is a company that included itself in China and Southeast Asia for decades, and it seems that she is now looking at the possibility of being forced to change the entire road in which they think about building and pricing iPhone,” says Eric Wooding, an analyst at Morgan Stanley.

The pressure comes despite Apple The pledge in February To employ 20,000 employees as part of an American spending plan worth $ 500 billion for the next four years, which include new servers for the manufacture of artificial intelligence in Texas.

The fact that Apple currently does not manage its manufacturing facilities, but it uses it to the Asian -based companies, as it has spent two decades and billions of dollars in sponsoring specialized equipment, adding an additional layer of complexity.

The IPHONE Association is currently in China, the mainland by companies such as Foxconn’s Foxconn and PEGATRON from Taiwan and a lesser extent in India, where Tata builds capacity as Apple. This is the last step in a wide range of Apple suppliers, most of which are currently in Asia.

There are 387 individual pieces involved in the final assembly of the iPhone 16, according to the Techinsights Market Group, which include chips, circuit paintings, batteries, wires, lenses, screens, metal and plastic parts.

The Apple General Suppliers List, which covers the fiscal year 2023, shows that 187 companies are responsible for 98 percent of the company’s direct spending that year. Among these companies, 169 had manufacturing in continental China and Taiwan.

Behind China, the company faces pressure throughout its supply chain. Vietnam, a major source of MacBook, has been subjected to 46 percent of the customs tariff despite the offer from the country’s government to reduce the fees on American goods to scratch.

He said that the assembly of iPhone devices in the United States was “technically” in the United States. “If so, this is a tremendous headache.”

After a call with Luxshare executives, another Apple’s main resource, Bernstein’s analysts said they confirmed their view that the transfer of the iPhone group to the United States was “impractical” because it “will continue to depend on the Asian components subject to tariffs.”