South Korean media: Can Apple's "Made in India iPhone" strategy work?
On September 11, the South Korean newspaper Seoul Economic Daily reported that in the second quarter of this year, four out of every ten smartphones imported into the United States were made in India. Data from market research company Canalys showed that 44% of smartphones imported into the United States in the second quarter were made in India, a significant increase from 13% in the same period last year. Meanwhile, the share of smartphones made in China fell from 61% to 25% during the same period.
The rise of smartphones made in India in the U.S. market has led Apple to develop India as the next iPhone production base after China.
Although the United States will not immediately impose high tariffs on smartphones produced in India and imported into the United States, there is still uncertainty surrounding smartphone tariffs.
Apple does not have its own manufacturing plants. It relies on large contract manufacturers such as Foxconn to produce products. Hundreds of iPhone components come from countries such as South Korea, China, and Japan, and are then assembled by Foxconn. As one of Apple's main suppliers, Foxconn is building a new factory in India to strengthen its local ecosystem.
U.S. President Donald Trump not only hopes that iPhones are produced outside of China, but he also wants "American-made iPhones." In May this year, he posted on social media: "If iPhones sold in the United States are not made in America, Apple will face at least a 25% tariff."
It is generally believed that producing iPhones in the United States is not realistic. Replicating the complex ecosystem established in Asia in the United States is very difficult. Analysts believe that even if iPhones are produced in the United States, the production costs would significantly increase, leading to higher prices for consumers.
Apple bearing the tariff burden is seen as a more realistic option. Of course, it cannot be ruled out that Apple may pass on the tariff burden to consumers. Samsung Electronics is also in this situation, as most of its smartphones sold in the United States are produced in Vietnam.
A industry insider told Reuters, "It is too early to conclude whether Apple's manufacturing plans in India will change due to President Trump's recent actions or future policy changes. These plans are made with a long-term perspective."
Original: www.toutiao.com/article/1842970665969800/
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