With electronics tariffs off, what happens to iPhone in India?

Was the iPhone under fire from tariffs?

Yes. Apple is the world’s largest smartphone brand, shipping over 240 million devices and generating over $200 billion in annual revenue just from iPhone. But, none of this is made in the US—China accounts for four of every five iPhones made. As things stood before Trump’s exemption on electronics, Apple’s cost of making the iPhone in China could have potentially increased by 2.5x—exposing one of America’s biggest tech exports to billions in import taxes and causing shareholders to lose equally. Geopolitical experts say this made it one of the most vital commodities under duress from Trump’s tariffs.

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How big a role does India play for Apple?

Apple has set up assembly lines in partnerships with electronics manufacturing services in India. After China, India is Apple’s biggest assembly destination, and by 2028, Apple is expected to make one in every five iPhones here. As per the IT ministry, as of March, iPhones accounted for three of every four smartphones exported from India, and smartphone exports were worth nearly $25 billion. With more components now being localized, Apple is the single most important company for India’s electronics ecosystem. With targets of $50 billion in exports by 2030, Apple continuing in India is important.

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How important are exports to electronics’ success?

India’s electronics industry’s target is to scale $500 billion in annual revenue by 2030. Exports of smartphones are set to cross $50 billion by this time—while electronics overall could come close to $100 billion. This makes exports a key part of the industry, with Apple driving it. Local manufacturing could make electronics a bigger part of India’s economy.

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Is it an opportunity for India’s electronics?

If the tariff exemption stays, it represents a key opportunity for India. Apple is already actively investing in India. Exempting electronics will allow global tech majors such as Apple to get out of having to manufacture in North America. With Apple’s proven might around the world, India receiving increased investments in tech manufacturing could lead to more component makers setting up shop here. In due course, India is targeting to double the domestic value addition for electronics in the country.

Are there concerns in the long run?

Supply chain executives believe the biggest challenge is the inconsistency of Trump’s foreign and trade policies. India’s electronics exports are a mere 2% of China’s. This means globally, India will still be influenced by what the US decides next for the electronics supply chain. If the exemption on smartphones is removed, India stands to lose Apple’s future investments and may not be able to attract strong component suppliers. That is actually a realistic scenario, as Trump’s policies are volatile.