Apple plans to get more iPhones to us from India to compensate China rates: Report | Today news

Apple is increasing the efforts to send more iPhones to the United States from India to impede the impact of steep new rates on Chinese goods imposed by President Donald Trump, reports the Wall Street Journal, citing resources familiar with the case. The move is a short -term strategy, while the company seeks an exemption from the rates. For the time being, Apple considers the landscape too volatile to justify major changes to its global supply chain. Rates take a bite: $ 300 increase on iPhone costs Trump’s renewed tariff package, at least 54% on Chinese goods and a 26% rate on imports from India. An increase of $ 300 can be added to the current $ 550 hardware cost of an iPhone 16 Pro, according to estimates according to Techinsights cited in the news release. The model currently sells $ 1,100. “Apple can limit the damage by entering phones from India where the rate is about half as high,” the WSJ noted. According to Bank of America analyst Wamsi Mohan, as cited by WSJ, the Indian-made iPhones may expect half of the US demand for Apple. Although 10 million units are intended for the domestic Indian market, the rest could be diverted to the US. “If Apple were to redirect all iPhones that India manufactured to the US, it could meet about 50% of US demand for the device this year,” Mohan said. Trump doubles despite the market jitters, Trump has lost rates. He threatened additional charges on Monday if China did not remove the retaliation announced after the US unveiled its tariff plans on April 2. “Other countries have abused the United States with their trade policies,” Trump said, adding that the “billions of dollars” would earn. He also insisted on more manufacturing on US land. Production in India offers Flexibility Apple has gradually expanded its iPhone mounting operations in India since 2017 and worked with partners to not only build older models, but now even the latest devices. This shift helps Apple diversify from China, reduce tariff risks and avoid import taxes when selling in India in India from the fastest growing smartphone markets worldwide. The company is capable of stamping India as the country of origin due to “substantial transformation” that occurs there – from a collection of parts to a functioning smartphone. Vietnam has a similar tariff pressure Vietnam, another Asian manufacturing center for Apple, especially for Airpods, Apple Watches and iPads, has a 46% tariff under Trump’s policy – almost as high as China’s. However, after a conversation with Vietnam, Trump hinted at a possible postponement, suggesting that he may be open to a better agreement. Manufactured iPhones in the US? Despite Trump’s pressure, it’s probably not, but it’s unlikely to move the iPhone meeting to the US. “The cost would be far beyond the cost of paying the rate,” analysts and suppliers told the news store. The composition of iPhones requires massive workforce that enable high-speed tasks that are much more available and cost-effective in Asia.