On August 5, technology website 9to5mac reported that Apple may say that most iPhones sold in the United States today are assembled in India, but this does not necessarily mean that Apple has reduced its reliance on China. Patrick McGee, a senior technology reporter at the Financial Times, explained this.
Apple iPhone
Apple CEO Tim Cook pointed out during the past two quarters’ earnings calls that iPhones sold in the U.S. come from India. The move would allow Apple to avoid tariffs imposed by Trump on China.
At the same time, research company Canalys released a report saying that in the second quarter as of June, India replaced China as the largest supplier of smartphones to the United States for the first time, accounting for 44% of the market share, and accompanied it with a chart.
In response, McGee said the chart was technically true but contextually misleading. McGee has conducted in-depth research on Apple's business in China and published the book "Apple in China".
McGee's explanation
McGee pointed out that although India is becoming one of the final assembly places for iPhones, outsiders should not think that India will become the next China in terms of iPhone production. In short, India is only responsible for the final assembly, which is a workaround for Apple to avoid tariffs.
"Currently, no iPhone is truly 'Made in India'. But as long as the final step of assembly is completed in India, the product can be 'substantively' changed to avoid tariffs. However, these iPhones are still highly dependent on the supply chain with China as the core, and you No iPhone has ever been used. The depth and breadth of this supply chain has not changed, and it may change in the future, but that will take years, cost tens of billions of dollars, and may cause unwanted friction between Apple and China and Chinese consumers,” McGee said on X.
McGee added: Yes, India is the 'origin', but the premise is that the more than 1,000 components of each iPhone have been processed, cast, laser welded, injection molded, etched, assembled and other complex processes have been completed in China's large and efficient, complex and costly factory network. This process employs up to 3 million workers each year. These semi-finished products are then exported to India for final assembly and packaging, which requires only tens of thousands of workers. "
McGee finally concluded that the current so-called "Made in India" iPhone is nothing more than an attempt to circumvent the Modi government's tariffs on Chinese products exported to India and the Trump administration's tariffs on Chinese products exported to the United States.