The prospect of tariffs from former U.S. President Donald Trump led to concerns about potential price hikes for iPhones. However, Apple’s iPhone exports from India have not been affected by the tariffs. The U.S. government had earlier provided exemptions from reciprocal tariffs for electronic goods, including smartphones and computers. This allowed Apple’s iPhone and other semiconductor-powered devices to enter the U.S. market from India without additional charges. This exemption has benefited Apple and other technology companies.
Apple appears prepared to absorb potential extra costs rather than halt its expansion in India. However, analysts caution against dismissing the potential impact of a 50% tariff. If applied to iPhones, it could significantly change Apple’s pricing strategy in major markets, potentially increasing costs.
While the current tariff situation safeguards iPhones, it remains uncertain. Tariffs have been implemented on other goods. Experts suggest a similar approach could affect smartphones.
India has become an important production location for Apple, not just as an alternative to China. Apple’s future success depends on U.S. trade policies.
Data shows that a growing percentage of iPhones sold in the U.S. are made in India. Between April and June, 71 percent of the iPhones sold in the U.S. were made in India, which is a substantial increase from the previous year. Foxconn exported $3.2 billion worth of iPhones from India, with almost all of them going to the United States.
During a recent earnings call, Apple CEO Tim Cook confirmed that iPhone production has remained stable. This suggests that the majority of the iPhones sold in the United States are still being produced in India.