The Wall Street Journal reports that Apple has expedited the import of iPhones from India to the United States in response to the risks from import tariffs. India has a new tax rate of 26%, while China, the primary manufacturing base for iPhones, may face rates as high as 54%.
In the past year, Apple manufactured around 25 million iPhones in India, with 10 million intended for sale in the country. However, Apple’s latest plan aims to have nearly all iPhones produced in India sent to America, accounting for about 50% of sales there. Additionally, Apple has also ordered an increase in iPhone production in India.
In addition to expediting iPhone imports from India, it is reported that Apple executives are negotiating with the US government to seek tax exemptions. In February, Apple announced a $500 billion investment plan in the US over a 4-year period.
Source: The Wall Street Journal
TLDR: Apple accelerates iPhone imports from India to the US to mitigate risks from import tariffs, while also negotiating for potential tax exemptions and increasing iPhone production in India.
Leave a Comment