Apple's Strategic Move to India

In a significant shift, Apple is increasing its iPhone production in India, moving away from China to mitigate the impact of escalating tariff costs, according to a Wall Street Journal report. This strategic adjustment underscores the iPhone's pivotal role in Apple's revenue, accounting for nearly half of its total earnings.

Navigating Through Tariff Challenges

The tech behemoth views this transition as a temporary solution while it lobbies for a tariff exemption from US President Donald Trump. Apple's CEO, Tim Cook, previously secured such concessions during Trump's earlier administration. The current geopolitical and economic unpredictability has led Apple to hesitate in making permanent alterations to its global supply chain framework.

The Tariff Landscape

Under the new tariff regime, imports from China face a steep 54% duty, whereas goods from India are subject to a comparatively lower 26%. Trump has recently escalated tensions by threatening additional tariffs on China unless it retracts retaliatory measures imposed in response to US tariffs announced on April 2.