Apple is ramping up production in India as a way to beat US president Donald Trump’s tariffs in China. The tech giant has reportedly flown 600 tonnes of I-phones from India to the US in the last few weeks to avoid paying the higher tariffs.
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00:00Around 80% of iPhones imported to the United States come from China.
00:08The rest come from here in India.
00:10But those numbers are likely to shift significantly this year,
00:13as Apple tries to avoid the impact of the whopping 125% tariffs placed on Chinese imports to the US.
00:21That strategy had begun even before Liberation Day.
00:25At least six cargo planes with a capacity of 100 tonnes each have reportedly flown from India to the US since March,
00:33including one this week, carrying an estimated 1.5 million iPhones.
00:39Around 10-15% of iPhone assembly happens in India.
00:44And Apple had already wanted to increase that number to 25% by this year,
00:49and is now reportedly looking to increase it even further and fast.
00:54The company is building more factories, hiring more workers,
00:57and has added Sunday as a production day at its biggest plant.
01:02But India is not yet a perfect alternative.
01:05Assembly can be done here, but it's impossible to make an iPhone without parts from China.
01:10Apple had already been developing its supply chain here as an alternative,
01:15and it would be wise to continue investment.
01:18With a bilateral trade agreement between India and the US likely to take effect later this year,
01:23the 26% tariffs slapped on India last week, which are currently on pause,
01:29may have a very short lifespan, if they come back into effect at all.
01:37Thank you, everyone.
01:39We're talking to you next week.
01:43I'm going to go back to our next week.