Following the announcement of tariffs by former U.S. President Donald Trump, concerns arose among Apple enthusiasts regarding potential price increases for iPhones. Despite the tariffs, the export of Apple iPhones from India has remained unaffected. In April, the Trump administration exempted smartphones, computers, and other electronic goods from reciprocal tariffs. This exemption has allowed Apple’s semiconductor-powered devices, including the iPhone, to enter the U.S. market from India without additional charges. This exemption has provided relief not only to Apple but also to other technology companies like Nvidia.
Currently, Apple is likely to absorb any extra costs rather than hinder its expansion in India. However, a report suggests that analysts have cautioned against disregarding the risk of a 50 percent tariff. If applied to iPhones, this could reshape Apple’s pricing in major markets, potentially leading to price increases. While the tariff shield currently protects iPhones, the situation remains unstable. Powers under Section 232 have been used to impose tariffs on steel and aluminum, affecting common items such as fishing reels and brooms. Experts warn that these powers could also be applied to smartphones.
For Apple, India has become not only a substitute for China but also a production hub for iPhones destined for the U.S. The company’s position is strong, but its future success hinges on whether Washington keeps the door open or decides to close it by imposing new tariffs.
According to the Economic Times, data from Counterpoint Research shows that 71 percent of iPhones sold in the U.S. between April and June were made in India, significantly higher than the 31 percent a year earlier. Data accessed by Reuters indicates that Foxconn exported $3.2 billion worth of iPhones from India between March and May this year, with an average of 97 percent going to the U.S.
During Apple’s second-quarter earnings, CEO Tim Cook told analysts that iPhone production remained consistent with what he had mentioned in the previous quarter, indicating that the majority of iPhones sold in the U.S. are produced in India.
