{"id":281439,"date":"2025-04-14T08:08:31","date_gmt":"2025-04-14T08:08:31","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/14\/the-22-billion-pivot-apples-india-gamble-starts-to-pay-off-amid-us-china-trade-war-times-of-india\/"},"modified":"2025-04-14T08:08:31","modified_gmt":"2025-04-14T08:08:31","slug":"the-22-billion-pivot-apples-india-gamble-starts-to-pay-off-amid-us-china-trade-war-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/14\/the-22-billion-pivot-apples-india-gamble-starts-to-pay-off-amid-us-china-trade-war-times-of-india\/","title":{"rendered":"The $22 billion pivot: Apple\u2019s India gamble starts to pay off amid US-China trade war &#8211; Times of India"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i1.wp.com\/static.toiimg.com\/thumb\/msid-120269952,imgsize-102470,width-400,resizemode-4\/120269952.jpg?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The  billion pivot: Apple\u2019s India gamble starts to pay off amid US-China trade war &#8211; Times of India\" title=\"The  billion pivot: Apple\u2019s India gamble starts to pay off amid US-China trade war &#8211; Times of India\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<div class=\"MwN2O\">\n<div class=\"vdo_embedd\">\n<div class=\"T22zO\">\n<section class=\"D3Wk1  clearfix id-r-component leadmedia undefined undefined  VtlfQ\" style=\"top:0px\">\n<div class=\"D3Wk1\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"zPaFh\">\n<div class=\"wJnIp\"><\/div>\n<\/div>\n<\/div>\n<div class=\"cj2hz img_cptn\"><span title=\"For Apple, India offers more than escape from China. It provides access to a growing domestic market.\">For Apple, India offers more than escape from China. It provides access to a growing domestic market.<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Apple produced $22 billion worth of iPhones in India in the 12 months through March 2025 \u2014 a staggering 60% jump from the prior year, according to a Bloomberg report. That means 1 in every 5 iPhones globally is now made in India, a sharp climb from near-zero just a few years ago.<br \/>The iPhones are built across factories in Tamil Nadu and Karnataka, mostly by Foxconn, Apple\u2019s biggest manufacturing partner globally. Tata Electronics and Pegatron also contribute to this growing output.<br \/>Apple exported $17.4 billion worth of iPhones from India during the same period, according to IT minister Ashwini Vaishnaw, underscoring New Delhi\u2019s emergence as a key export hub for Apple\u2019s global supply chain.<br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Why it matters<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"10\">\n<ul>\n<li>This surge is a strategic retreat from China, born out of pandemic disruptions, supply chain vulnerabilities, and escalating tensions with the US. Apple\u2019s manufacturing diversification, once incremental, is now in overdrive \u2014 driven in large part by President Donald Trump\u2019s tariff offensive on Chinese electronics, which currently sits at 145%.<\/li>\n<li>Apple leaned into India as Covid lockdowns crippled China-based factories, including its largest iPhone plant.<\/li>\n<li>After Trump announced \u201creciprocal tariffs\u201d in February, Apple reportedly accelerated <a href=\"https:\/\/timesofindia.indiatimes.com\/technology\/mobiles-tabs\/when-apple-airlifted-600-tons-of-iphones-from-india-to-beat-trump-tariffs\/articleshow\/120206454.cms\" data-type=\"tilCustomLink\">US-bound shipments from India<\/a>.<\/li>\n<li>A last-minute exemption on smartphones offered temporary relief, but the broader uncertainty remains. <\/li>\n<li>For Apple, India offers more than escape from China. It provides access to a growing domestic market, one in which Apple\u2019s smartphone sales hit $8 billion in fiscal 2024, per Bloomberg, despite holding only 8% of market share. The iPhone, aspirational and elite, still holds sway in India\u2019s rising middle class.<\/li>\n<li>Apple hasn\u2019t publicly addressed its India pivot, but its actions speak volumes: The company now assembles its entire iPhone range, including premium titanium Pro models, in India.<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">The big picture<\/span><br \/>As per a WSJ report, Apple\u2019s move fits squarely within CEO Tim Cook\u2019s \u201clong arc of time\u201d mantra \u2014 a strategic philosophy that prizes long-term resilience over short-term gains.<br \/>When Apple\u2019s market cap plunged nearly $800 billion following tariff announcements, Cook stayed quiet in public, but rushed Indian-made iPhones to US shores, according to the WSJ. The reprieve from tariffs came late on a Friday, after intense pressure from Apple and a jittery stock market.<br \/>\u201cIn the long arc of time, people change their mind on companies, but we\u2019ve always suited up and fought,\u201d Cook said in 2013.<br \/>In 2023, he told analysts, \u201cIf you look at it over a long arc of time, I think there\u2019s a good opportunity across the board.\u201d<\/p>\n<div class=\"_oWMq   \">\n<p>Over the years, Cook has time and again leaned into the \u201clong arc of time\u201d mantra when facing in-the-moment challenges. In that, he\u2019s a contrast to typical tech-industry leaders preaching short-term \u201cship and fix\u201d strategies. Cook\u2019s language evokes the famed quote from his personal hero, civil-rights leader Martin Luther King Jr, who said: \u201cThe arc of the moral universe is long, but it bends toward justice.\u201d<\/p>\n<p>An article in Wall Street Journal<small\/><\/p>\n<\/div>\n<p>His patience is paying off. Apple\u2019s $22 billion India output now rivals production volumes from its earlier-phase China factories. The government is helping too \u2014 Prime Minister Narendra Modi\u2019s administration has launched $2.7 billion in electronics manufacturing incentives, including subsidies for smartphone and semiconductor firms.<br \/>India, the world\u2019s most populous nation, has become both a production base and an emerging consumer market. Though Apple\u2019s market share in India is just 8%, its sales \u2014 mostly from iPhones -reached $8 billion in fiscal 2024.<br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Zoom in: Foxconn\u2019s bold new bet on UP<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"31\">\n<ul>\n<li>In parallel, Apple\u2019s top supplier Foxconn is planning a major new manufacturing facility in north India, marking its first solo project in the region. As reported by the Economic Times, Foxconn is in talks with the Uttar Pradesh government to acquire 300 acres along the Yamuna Expressway near Greater Noida.<\/li>\n<li>\u201cThis facility has the potential to be slightly bigger than its upcoming facility in Bengaluru, which is set to become the company\u2019s second largest globally,\u201d a source told ET.<\/li>\n<li>The land is located near a proposed semiconductor OSAT facility that Foxconn and HCL are jointly developing \u2014 placing Foxconn\u2019s new hub in close proximity to India\u2019s semiconductor ambitions and new airport at Jewar.<\/li>\n<li>While discussions are still ongoing and the exact product focus is unconfirmed, the move signals Foxconn\u2019s aggressive India expansion strategy, which already spans Tamil Nadu, Telangana, and Karnataka.<\/li>\n<li>\u201cFoxconn\u2019s expanded investment in India aligns with global supply chain realignments aimed at fostering resilience and promoting diversification,\u201d said Prabhu Ram of CyberMedia Research to ET.<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">What they\u2019re saying<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"34\">\n<ul>\n<li>\u201cThe uncertainty over tariffs and geopolitical climate gives Foxconn a \u2018capacity safety net\u2019 for the potential future EMS opportunities that will eventually fall into India\u2019s lap,\u201d said Neil Shah, vice-president at Counterpoint Research.<\/li>\n<li>\u201cIt\u2019s good to diversify geographically and, at the same time, being closer to some prospective customers will help tap them \u2014 from smart devices to auto,\u201d Shah added.<\/li>\n<li>\u201cDefinitely, we want to move up the value chain as much as we can in India,\u201d said Foxconn Chairman Young Liu, who visited India last year and outlined plans beyond smartphones, including electric vehicles, digital health, energy tech, and ICT.<\/li>\n<li>Foxconn is reportedly aiming to produce 25\u201330 million iPhones in India this year \u2014 more than double last year\u2019s volume, according to the ET report.<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Between the lines<\/span><br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Apple\u2019s pivot has enabled:<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"39\">\n<ul>\n<li>Price stability in the US market amid tariff tremors.<\/li>\n<li>Lower reliance on Chinese production amid rising political risk.<\/li>\n<li>Access to India\u2019s skilled labor and favorable policy climate.<\/li>\n<li>Meanwhile, the US remains unlikely as a large-scale iPhone production site.<\/li>\n<li>\u201cIn the US, you could have a meeting of tooling engineers and I\u2019m not sure we could fill the room. In China, you could fill multiple football fields,\u201d Cook said in 2017, illustrating the limits of reshoring.<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">What\u2019s next<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"42\">\n<ul>\n<li>Apple\u2019s diversification is far from over \u2014 but India now looks set to lead its next chapter.<\/li>\n<li>India is no longer a backup plan \u2014 it\u2019s a strategic manufacturing cornerstone. The Noida-Chennai clusters are developing into modern industrial ecosystems, complete with infrastructure, talent pools, and supplier networks.<\/li>\n<li>With Foxconn deepening its roots in Uttar Pradesh, and Tata scaling its manufacturing capacity, Apple\u2019s India production could soon match or exceed early-stage output once seen in China.<\/li>\n<li>India\u2019s growing chip ambitions and export incentives make it an ideal partner for Apple\u2019s long-term roadmap.<\/li>\n<li>As Cook continues to walk his long arc, Apple\u2019s bet on India looks not just smart but inevitable.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><script>\nvar _mfq = window._mfq || [];\n_mfq.push([\"setVariable\", \"toi_titan\", window.location.href]);\n!(function(f, b, e, v, n, t, s) {\n    function loadFBEvents(isFBCampaignActive) {\n      if (!isFBCampaignActive) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        if (f.fbq) return;\n        n = f.fbq = function() {\n          n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments);\n        };\n        if (!f._fbq) f._fbq = n;\n        n.push = n;\n        n.loaded = !0;\n        n.version = '2.0';\n        n.queue = [];\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/connect.facebook.net\/en_US\/fbevents.js', n, t, s);\n      fbq('init', '593671331875494');\n      fbq('track', 'PageView');\n    };\n    function loadGtagEvents(isGoogleCampaignActive) {\n      if (!isGoogleCampaignActive) {\n        return;\n      }\n      var id = document.getElementById('toi-plus-google-campaign');\n      if (id) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        t.id = 'toi-plus-google-campaign';\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/www.googletagmanager.com\/gtag\/js?id=AW-877820074', n, t, s);\n    };\n    function loadSurvicateJs(allowedSurvicateSections = []){\n      const section =  window.location.pathname.split('\/')[1]\n      const isHomePageAllowed = window.location.pathname === '\/' && allowedSurvicateSections.includes('homepage')\n      if(allowedSurvicateSections.includes(section) || isHomePageAllowed){\n        (function(w) {\n         function setAttributes() {\n                    var prime_user_status = window.isPrime ? 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It provides access to a growing domestic market. Apple produced $22 billion worth of iPhones in India in the 12 months through March 2025 \u2014 a staggering 60% jump from the prior year, according to a Bloomberg report. That means 1 in every 5 iPhones globally [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":281440,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static.toiimg.com\/thumb\/msid-120269952,imgsize-102470,width-400,resizemode-4\/120269952.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[1431,218020,218018,4399,1289,4476,273,190348,218019,795,15937,6462,272,14195,24483,3102],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281439"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=281439"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281439\/revisions"}],"predecessor-version":[{"id":281441,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281439\/revisions\/281441"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/281440"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=281439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=281439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=281439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}