Apple is probably stuck with iPhone manufacture in India

AppleInsider

Even though the markets have become mostly numb to the current administration's tariff see-saw, one analyst is worried that Apple may have to maintain India iPhone imports regardless.

More iPhones are being imported from India than ever

India has become a bit of a safe haven for Apple. It started moving more manufacturing and assembly to the country after COVID disrupted its China-reliant supply chain, but the move has proven fruitful to combat excessive and random tariff policy in the United States.

That safety, however, is under threat from another random thought exhaled by US President Trump -- a potential 25% tariff on India. While the market barely blinked, as it is used to these proclamations being walked back later, analysts at Evercore are somewhat concerned.

According to an analyst note from Evercore, viewed by AppleInsider, Apple's investment in India may prevent it from adjusting assembly and import easily if a 25% tariff is enacted. They estimate that India accounts for about 20% of all iPhone shipments, most of which go to the United States, and that equates to about $40 billion.

Whatever tariff is announced for India will have a dramatic effect on Apple's bottom line, as the company may have no choice but to absorb its impact. Whether or not this means passing the cost to the customer isn't mentioned in the report.

Apple is caught between a rock and a hard place when it comes to the United States tariff policy. It is impossible to assemble iPhones at scale in the United States today, and could take decades to get there.

Even if a magic wand could be waved and factories and trained employees could fill the Grand Canyon tomorrow, all of the parts would still need to be imported, which would be hit by tariffs anyway.

Extreme tariffs on China forced Apple to reconfigure its supply chain so final assembly for iPhones destined for the United States could occur in India. If high tariffs are levied against India, Apple has nowhere else to go in the short term.

Whether or not President Trump blinks again or implements excessive tariffs on India, Evercore maintains its position on Apple. It holds its outperform rating and $250 price target.



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blackwhitepanda

Is Evercore a trustful source? $250?? Quite brave number under current circumstances.

anthogag

Higher tariffs on India is a real possibility. Maybe 50% or 75%. I suspect Trump doesn't really care about Apple's predicament. The dictator wants Apple to manufacture in the US.  

rob53

Anyone who knows anything knows the majority of scammers are located in India. I would rather deal with China than India. My hope is that once the trump administration is history we can get back to some sane country interactions. 

jpellino

So Americans will now pay more for iPhones in order to punish India? For doing business with Russia?
Is the endgame here to get India to sanction Russia into stopping the war in Ukraine?
if so, that’s a massive miscalculation. But when your only tool is a hammer, every problem looks like a nail.

nickott

Trump likes tariffs simply because it's money for nothing... skimming. No different than a gangster getting businesses to pay protection money. He doesn't care who pays for it as long as he can boast about it. He's not America first, he only cares about the Trump empire.

sconosciuto

NickoTT said:

Trump likes tariffs simply because it's money for nothing... skimming. No different than a gangster getting businesses to pay protection money. He doesn't care who pays for it as long as he can boast about it. He's not America first, he only cares about the Trump empire.

Bingo. Tariffs give him king-like powers over American industries. 

blastdoor

I read that in The Apprentice, they would just cobble together clips of film to support whatever capricious decision Trump made, all in order to make him look smart and decisive. 

I’m getting the sense that something similar is going on here with tariff deals. Trump just wants to appear smart and decisive, but he doesn’t truly care about the details (although nobody can say that to his face — they have to pretend he’s a serious person). But whatever nonsense he spouts doesn’t matter too much — the details will be cobbled together later. And then revised as powerful people push back. 

At the end of the day, the only people who will really be hurt by Trump are the little people, especially the ones with darker skin.

applezulu

Of course, all but lost in all of this is the fact that remains: most of Trump's tariff declarations are not legal. This power belongs to Congress. 

Also, whatever happened to that Trump phone that was going to be made in the USA by now, and then wasn't going to be made in the USA? How are these tariffs going to affect the Trump phone? Does it exist? Does Trump Mobile still exist?