The Next iPhone You Buy In The US May Have Made-In-India Tag

The US-China trade war is showing no signs of simmering off and tech companies – on both sides – have started to feel the strain. While Apple so far has been hurt because of the less number of iPhones being sold in China, other issues haven’t really cropped up. A big concern is that if tariffs do rise then the iPhones that would reach US could have a 25% tariff imposed which will escalate the costs.

However, as per a report by Bloomberg, one of Apple’s biggest manufacturer has claimed that it can make all iPhones outside of China. The report quotes senior Foxconn executive, Young Liu, who said, “25% of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” said Liu. He further said that Foxconn has enough “capacity to meet Apple’s demand”.

Interestingly, in April it was reported that Foxconn has stepped up its efforts to manufacture more iPhones – including the 2018 lineup – in India. While it’s not sure that whether it’s to reduce the import duties in India or whether those phones would end up outside the country, India could be key player for Apple now.

The 25% tariff to be imposed on Apple could come in effect from end of this month. What it will lead to is increase in the costs of all Apple products that are imported from China. Almost every Apple product – iPhone, MacBook, iPad – are made in China. The Bloomberg report also states that if tariffs do come in play then it is expected that cost of Apple products may rise from anywhere between 9% to 16%. This may in turn lead to demand for Apple dropping by 10-40%.

It isn’t clear as of now how China plans to retaliate to the tariffs imposed by US president Donald Trump. So far the biggest casualty in the trade war has been Chinese powerhouse Huawei. Several US companies – including Google, Intel and others – have severed certain ties with Huawei for the time being.

For a while now it has been rumored that China may respond and its target could be Apple. Hence, the reports about how Apple may end up dealing with it if China does go through with taking harsh measures.―Times of India