Trump effect: iPhones worth $30B could be made in India
Apple's annual iPhone production in India, which is currently worth about $15-16 billion, could double to over $30 billion in the next two years. This is assuming that US President-elect Donald Trump keeps his campaign promise of imposing heavy tariffs on Chinese imports. According to The Economic Times, if the tariffs are imposed, Apple could become one of India's top manufacturing companies.
Trump's proposed tariffs could boost India's electronics sector
During his presidential campaign, Trump had proposed a 60-100% tariff on goods imported from China. This move is viewed as a continuation of his first term (2016-2020) strategy, when he had introduced several tariffs on Chinese imports. An official told ET that while India may face challenges in some sectors due to these tariffs, it could benefit significantly in electronics and especially iPhone production.
Apple commands a 6% share of India's smartphone market
Neil Shah, Vice President at Counterpoint Research, told ET that the growing demand for premium products like the iPhone Pro series, now made in India, could drive the overall production value over $30 billion per year within two years. According to Counterpoint's data, Apple commands a 6% share of India's smartphone market and beat Samsung to capture 23% of the smartphone revenue share in 2023.
Apple shipped over 10 million iPhones in India in 2023
Apple's sales in India have skyrocketed, with more than 10 million iPhones shipped in 2023, compared to six million last year. The surge helped Apple clinch the top revenue position for the year, ahead of Samsung. However, experts say doubling iPhone production will also depend on whether the Indian government can push deep reforms to tackle cost inefficiencies and policy uncertainties.
