Apple would have planned to change assembly of all iphones for the American market in India while the company seeks to reduce its dependence on a Chinese manufacturing base in the middle of the Donald Trump trade war.
The 3 TN technological company (2.3 tn £) aims to change the year next year, the Financial Times reported.
Apple was swept away in Trump’s aggressive pricing policies, the iPhone manufacturer at a given time among the largest victims of the stock market markets due to the prospect that its Chinese manufacturing products are affected by a strong import tax when they reach the United States.
However, the blow was softened by a white house decision to exclude smartphones from the heaviest Chinese prices, although Apple is still exposed to a 20% sample on all Chinese products as part of the American president’s response to the role of China in the production of fentanyl.
The complex manufacturing process behind iPhones involves more than 1,000 components from around the world – but they are widely implemented in China. Apple is secret on the details of its production processes, but analysts estimate that around 90% of its iPhones are assembled in the country.
According to the FT, Apple plans to source in India the more than 60 m iPhones sold in the United States each year at the end of 2026 – a commitment that would more than double the iPhone assembly in India.
Apple has already accelerated production in India and diverted from iPhones assembled in the country in the United States. The main Indian suppliers of the company, Foxconn and Tata, sent nearly $ 2 billion in combinations on their largest market in March while Apple sought to compensate for the impact of imminent rates.
It has also chartered freight flights to transport 600 tonnes of iphones – or up to 1.5 million aircraft – in the United States to guarantee sufficient inventory in a large market. Apple has three factories in India and last month temporarily extended operations on Sunday working in the largest factory of Foxconn India in Chennai.
According to US Investment, more than 5% of Apple Mac products and 80% of its iPads are also assembled in China. Apple watches are largely built in Vietnam.
Analysts do not expect Apple to move the production of iPhone in the United States, despite the White House insisting that the manufacture of an American technological product will finally return home. US President’s press secretary Karoline Leavitt told journalists that Apple’s recent announcement of an investment of $ 500 billion said that an iPhone manufactured in the United States was possible.
“If Apple did not think that the United States could do it, it would probably not have set up this big piece of change,” she said.
However, experts played the perspective. Wedbush Securities, an American financial company, said the cost of an American manufacturing iPhone would be more than triple if production was moved to the United States.
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“If consumers want an iphone of $ 3,500, we should make them in New Jersey or Texas or another State,” said Wedbush analyst Dan Ives.
Fraser Johnson, a professor at Ivey Business School in Canada and an apple supply chain expert, said last month that the American economy did not have flexible facilities to assemble iPhones.
“Training 200,000 to 300,000 people to come and assembling iPhones is simply not practical,” he said.
Apple was approached for comments.
