Apple's Strategic Pause on India Expansion for US Market

Following the recent US-China tariff truce, Apple is taking a moment to reassess its ambitious plans to scale up iPhone production in India specifically for the US market. While the company's broader expansion and diversification strategy, known as China+1, remains on track, the exclusive focus on US supply chains from India is under temporary review.

Uncertainty Over Geopolitical and Tariff Policies

"We're awaiting clearer signals on the geopolitical landscape and tariff policies. The rapid changes in the US government's stance, especially the recent drastic reductions in duties on Chinese imports, have prompted us to pause and reconsider our mega production expansion plans in India for the US market," a source revealed to TOI.

Trump's Influence on Apple's Manufacturing Decisions

During his visit to Doha, former President Trump reportedly advised Apple CEO Tim Cook against sourcing iPhones from India for the US market. This advice comes in the wake of Apple's commitment to invest $500 billion in the US over the next four years, including establishing a new advanced manufacturing facility in Houston.

Apple's Assurance to India

Despite the review, Apple has reassured the Indian government of its continued investment in the country through manufacturing partners like Foxconn and the Tata group. The company emphasized that its post-Covid investment plans under the production-linked incentive (PLI) scheme for smartphones will proceed without interruption.

Looking Ahead

A senior government official noted that production facility decisions are multifaceted, involving considerations of revenue, productivity, and competitiveness, underscoring the commercial nature of these choices.