Apple, Samsung shifting production to India as Trump's tariffs bite
What's the story
In light of US President Donald Trump's increased tariffs on goods from China and Vietnam, Apple and Samsung are revising their production strategies.
The two tech giants are turning to India's 'Make in India' initiative, as they work to stay competitive in the US market.
Despite facing logistical challenges and regulatory hurdles, efforts are being made to ensure that supply chains remain competitive.
Apple's strategy
Apple begins iPhone exports from India to US
Apple, the world's largest electronics seller, has begun utilizing its Indian factories to export iPhones to the US. The move is part of a broader strategy to drastically cut down on exports from China.
The decision comes after Trump announced reciprocal tariffs (26%) on Indian goods, and hiked tariffs on Chinese and Vietnamese products to 54% and 46%, respectively.
An industry official told Times of India that "India's factories will be increasingly used to ship only to the US."
Production details
iPhones in India are manufactured by Foxconn, Tata Group
Currently, iPhones manufactured in India are being produced by Foxconn and Tata Group units.
Over the past few years, the Tata Group has acquired assets from Taiwanese firms Wistron and Pegatron.
The industry official hinted at a major capacity expansion in India if Apple continues with this strategy without setting up new production zones elsewhere.
This could mean huge investments from both Foxconn and Tata Group.
Samsung's approach
Samsung considers India as a temporary measure for exports
Samsung is also looking at India as a stop-gap for its exports, given the higher duties on imports from Vietnam.
The tech giant has a manufacturing unit in Noida, where it makes smartphones such as S25 and Fold models.
"Samsung will find it better to ship from India at a duty of 26% than export from Vietnam," an industry official said.