U.S. President Donald Trump has been making strong efforts to pull Apple’s iPhone manufacturing business away from India. He initially warned Apple’s CEO Tim Cook and then threatened that if Apple continued its production in India, the company would face a 25% tariff. However, it seems these threats are unlikely to have any significant impact on Apple’s operations. Instead of scaling back production in India, Apple is making strides to expand its business even further.
Recently, Apple struck a significant deal with the Tata Group. The two companies have entered into a partnership where Tata will take over the responsibility of repairing iPhones and MacBooks in India. This partnership is part of Apple’s strategy to expand its presence in India’s rapidly growing market. To reduce its reliance on China and speed up its supply chain, Apple has teamed up with Tata.
This isn’t Apple’s first collaboration with Tata, however. The Tata Group has already been an Apple supplier, involved in iPhone assembly. Tata’s involvement in the smartphone supply chain is rapidly increasing, and it’s emerging as a major player in the industry. Until now, Taiwanese companies like Foxconn have dominated the sector. Tata Electronics, based in Hosur, Tamil Nadu, handles iPhone assembly in India.
Apple has made significant headway in India’s market. Last fiscal year, the company produced approximately $22 billion worth of iPhones in India, marking a remarkable 60% year-over-year increase. Currently, one out of every five iPhones is assembled in India, highlighting the company’s growing production footprint in the country. India, being the second-largest smartphone market in the world, has become a vital part of Apple’s strategy.
According to Counterpoint Research, around 11 million iPhones were sold in India last year, which accounts for 7% of the smartphone market share in the country. Given these figures, it would be a significant challenge for Apple to exit such a lucrative market. Therefore, despite Trump’s attempts, Apple’s commitment to India remains strong, and the company seems set to continue expanding its operations in the country.
Leave a Reply