Taxes on Chinese products have a direct impact on Apple. For example, producing an iPhone 16 pro in China costs around 550 dollars, but this cost increases by 300 dollars with American customs duties. To avoid this increase, Apple has chosen to intensify its production in India.
According to Wamsi Mohan, analyst at Bank of America, if all the iPhones manufactured in India were exported to the United States, Apple could cover around 50 % of American demand this year. This would allow the company to limit the impact of taxes and at the same time, to meet the needs of the American market.
However, India cannot yet compete with China on certain industrial aspects. The components necessary to assemble iPhones are largely imported, and the country still lacks a manufacturing ecosystem as integrated as that of China. Despite these limits, Apple invests massively to develop its capacities in India and reduce its dependence on the Chinese market.
