Earlier, information appeared that Apple plans to move iPhone production from China to India to avoid high tariffs that affect the cost of products. However, analysts consider this step unrealistic. This is reported by My Drivers.
Analyst Craig Moffitt notes that the trade conflict between the US and China is creating problems for both costs and sales, and moving iPhone production to India will not solve all of these issues.
While India has the potential to increase iPhone production, it currently only supplies 20% of global shipments. Additionally, smartphone components will still be made in China, leaving Apple dependent on its Chinese manufacturing base. Moffitt also emphasizes that India’s low labor costs may help preserve margins, but that doesn’t solve the tariff problem.
Additionally, Chinese authorities are making it difficult to transport equipment out of the country, creating additional hurdles for Apple. So while relocating production could reduce costs in the long run, the plan remains a challenge.