Reference Message Network reported on May 21. The website of Germany's Deutsche Welle Radio published an article titled "Can India Help Apple Reduce Dependence on China?" on May 18. The full text is excerpted as follows: The American technology giant Apple Inc. said this month that India would play an important role in the production of iPhones for the US market. Apple CEO Tim Cook stated when announcing the company's latest quarterly results on May 5: "Most of the iPhones sold in the United States will be produced in India in the future." He also mentioned that Vietnam would produce almost all iPads, Macs, Apple Watches, and AirPods sold in the United States. This decision aims to mitigate the impact of US President Trump's tariff policies on Apple's supply chain, sales, and profit margins. Leh Chakrabarti, a senior economist at the National Institute of Public Finance and Policy in India, believes that while Apple transferring more iPhone production to India presents significant opportunities, it also faces some challenges. "A closer analysis reveals potential challenges, including weaker cost competitiveness compared to China, rigidity in the labor market, and vulnerability in the supply chain," he said. Chakrabarti emphasized that producing iPhones in India costs 5% to 10% more due to higher component costs and relatively lower factory efficiency. "In addition, the fiscal impact of this investment deserves careful consideration, especially regarding taxation, infrastructure investment, and potential subsidies," Chakrabarti said. "Developing a reasonable policy approach is crucial to minimize risks and maximize returns." It is estimated that currently 20% of global iPhones are produced in India. According to Bloomberg reports, Apple produced $22 billion worth of iPhones in India over the 12 months ending March 2025, up 60% from the previous year. The American company plans to produce more than 60 million iPhones annually in India by 2026, doubling its current output. In India, iPhones are mainly assembled by three contract manufacturers — Foxconn, Pegatron, and a company under Tata Group. Foxconn, the largest among them, handles most of the iPhone production in India. India's government recently announced a new policy aimed at improving the country's electronic manufacturing system. This shift in production is significant for Apple because the company has traditionally relied heavily on factories in mainland China to produce its products. However, Trump's high tariffs placed Apple in a difficult situation and forced it to rethink its strategy. Trump later approved temporary tariff exemptions for certain products, including smartphones. Washington and Beijing have recently agreed to adjust their reciprocal tariff measures. Shrijai Shetty, founder of India's "Legal Experts" company, told Deutsche Welle that India must make substantial investments in infrastructure, labor skills, and technology to become a truly independent manufacturing center for Apple. He said: "While this presents a huge opportunity for India's commercial development and enhances the status of Indian companies in the eyes of some multinational corporations, it also adds a layer of complexity to the already uncertain Sino-Indian relationship." Shetty believes that moving most production from China to India may face challenges in terms of technology and expertise transfer. He emphasized: "Given the current geopolitical situation, expecting China's expertise, skills, and production equipment to transfer (to India) at the required speed is naive." He considers that the final outcome remains uncertain considering economic factors, skilled labor, and supply chain reconstruction. Niku Shah, co-founder and CEO of India-based Indi Semiconductor, which focuses on semiconductors and embedded systems, believes that India has the capability to meet all future requirements for iPhones, but its ecosystem needs further improvement. He emphasized that gaining more iPhone orders provides India with an opportunity to enhance its position in the global electronics manufacturing sector. "Success or failure depends on whether infrastructure and policy constraints that have long hindered the competitiveness of its manufacturing industry can be resolved." Shah stated: "Although this aligns with the 'Make in India' initiative and has the potential to transform India into a global electronics manufacturing hub, it also brings certain risks, such as excessive reliance on a single multinational corporation and potential geopolitical pressures." Original Source: https://www.toutiao.com/article/7506831641026675226/ Disclaimer: The views expressed in this article are solely those of the author. Feel free to express your opinions by clicking the "Like/Dislike" buttons below.