Amid the delay in the trade deal between india and the US, former US President donald trump on wednesday announced a new tariff of 25 percent on India. His decision has raised concerns in the industry. This announcement has dealt a big blow to Apple's ambition of making india an export hub and its plans of rapidly increasing production here. It is believed that this may affect Apple's future plans of production and export in India.
Along with this, trump has also talked about additional penalties regarding India's defense and energy relations. According to market analysts, this decision will have a direct impact on apple and the company may have to increase the prices of its products.
Impact on Apple's business
India exported about $14 billion worth of electronics, $10.5 billion worth of pharmaceuticals and $4.09 billion worth of petroleum products to the US in FY 2024-25. Till now there was no tariff on these products, but now the imposition of tariff may affect the prices of especially expensive electronics like iPhones. However, the situation is not clear at the moment, and apple is in 'wait and watch' mode. Experts say that the scope of the tariff may increase further, the detailed information of which is yet to come.
IDC India's Device Research Associate Vice President Navkender Singh says that the new tariff of 25% on exports from india to the US will definitely affect Apple's plan, in which it wanted to make india a manufacturing hub for phones exported to the US.
More than 50% share in India's premium market
It is worth noting that apple has rapidly increased production in india through its manufacturing partner Foxconn. Under the China-plus-one strategy, apple has made india a production center. Nearly half of the iPhones exported recently were manufactured in India. Apart from this, Apple's share in India's premium smartphone market has exceeded 55 percent.
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