Apple Reportedly Plans To Move More iPhone Production To India Amid Trump Tariff Fears: Could This Solve The Potential 40% Price Hike?

Apple Inc. AAPL is reportedly shifting more of its iPhone production to India to mitigate the financial impact of President Donald Trump's escalating tariffs on Chinese goods, potentially offsetting the projected 30% to 40% price increase on its device.

What Happened: Apple plans to ship more iPhones from India to the U.S. to avoid the high costs caused by new tariffs on Chinese-made products, reported the Wall Street Journal, citing people familiar with the matter.

The move comes after Trump's new tariff package raised duties on Chinese imports to at least 54%, significantly affecting tech companies that rely on Chinese-made components.

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The tariff on Chinese goods could increase Apple's hardware cost for an iPhone 16 Pro by around $300. The iPhone 16 Pro Max, currently $1,599, might reach nearly $2,300 with a 43% price hike.

Experts warn that this price hike could make the device less competitive in the U.S. market.

Bank of America analyst Wamsi Mohan notes that Apple was already on track to manufacture 25 million iPhones in India this year, with about 10 million intended for the local Indian market.

If Apple redirects these production units to the U.S., it could supply up to 50% of the American market's demand for the device.

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Why It Matters: The iPhone is Apple's flagship product, accounting for roughly half of the company's total revenue. In the first quarter, iPhone sales came in at $69.14 billion, down from $69.7 billion in the same period last year.

Apple has been working to expand its manufacturing footprint in India for several years, starting with older models and gradually incorporating newer ones.

While India's tariffs are more favorable than China's, Apple's primary manufacturing base remains in China due to the country's robust supplier network and skilled labor force.

Although Apple has made efforts to diversify its supply chain, with additional production in India and other countries like Vietnam, Trump's new tariffs continue to challenge the company's ability to maintain competitive pricing.

Price Action: Apple's stock has dropped approximately 25.59% so far this year, closing at $181.46 on Monday, according to Benzinga Pro data.

Benzinga Edge Stock Rankings assigns Apple (AAPL) a growth score of 45.04%. Want to see how it compares to other stocks? Click here for the full breakdown.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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