“Trump 2.0 will double the production of iPhones made in India… beneficial for Indian manufacturing.”

[방콕=뉴스핌] Correspondent Woori Hong = There are many voices worried about tariff risks due to former President Donald Trump‘s re-election success, but this will be advantageous for Indian manufacturing, and in particular, Apple’s production in India could double within a few years, The Economic Times (ET) reported on the 11th.

The media mentioned former President Trump’s pledge during the election period to impose tariffs of 60% to 100% on Chinese products, and said, “If this is implemented, iPhone production in India will fall by $30 billion per year over the next two years (approx. “It could increase to more than 42 trillion won,” he said, citing officials and industry experts.

Apple currently produces iPhones worth approximately $15 to $16 billion annually in India. If Trump raises tariffs on Chinese products in his second term, as he did in his first term, Apple could speed up its supply chain transfer to India to reduce its dependence on China, making Apple a major manufacturer in India. The analysis is that it will happen.

The industry predicts that Apple’s expansion of production capacity will create 200,000 jobs, and that India’s share of total iPhone production will increase from the current 12-14% to more than 26%.

“India may suffer losses in some areas, but areas such as electronics production, especially iPhone production, will greatly benefit (from higher tariffs),” an industry official, who requested anonymity, told the media.

Neel Shah, vice president of market research firm Counterpoint Research, said, “The iPhone Pro series is being produced in India due to the trend of premium smartphones in India and increasing demand for high-end iPhone models,” adding, “The annual production of iPhones in India has reached $30 billion.” “There is a possibility that it will exceed significantly,” he predicted.

However, some point out that the relocation of iPhone production may vary depending on President-elect Trump’s actions after he is officially inaugurated as president. Additionally, there were concerns that if the Indian government did not carry out in-depth reforms to resolve tariff risks, the production of iPhones and other products could be relocated from China to Vietnam.

Indian Foreign Minister Subramaniam Jaishankar said, “We missed the opportunity to develop manufacturing in the 1990s and early 2000s, but I believe that the current supply chain reorganization will give India a second chance. This time, we will do better than before, starting with Apple.” “There will be,” he said.

Meanwhile, Apple was found to have sold approximately $210 billion worth of iPhones from October 1 last year to September 30 this year. This accounts for 51% of Apple’s total sales of $391 billion.

After the Indian government’s Smartphone Production Linked Incentive (PLI) system, Apple moved 12-14% of its iPhone production to India over the past three years, but its dependence on China is still high, with the remaining 85% or more still produced in China.

However, Apple is rapidly expanding its production capacity in India amid the deepening trade conflict between the United States and China. Taiwan’s Foxconn and Pegatron, and India’s Tata Electronics are operating iPhone manufacturing plants in southern India, and about 70% of their production is exported to overseas countries such as the United States.

iPhone 16 produced in India [사진=블룸버그]

hongwoori84@newspim.com