Apple and Samsung are reportedly considering a significant overhaul of their global production plans, moving more of it to India in the wake of increased import tariffs from their erstwhile American ally, President Donald Trump. The U.S. imposed severe tariffs—54% on Chinese products, 46% on Vietnamese goods, and 26% on Indian imports—that have rendered India an attractive production base to export to the U.S.
Apple has been making iPhones in India for some time now, and a recent Times of India report has indicated that Apple may contemplate reducing its reliance on Chinese manufacturing. Indian plants, as per industry sources, may increasingly serve U.S. shipments, while other geographies such as Europe and Latin America will remain supplied from China. This shift may be a significant move for Indian iPhone manufacturing, and with it could be big growth if Apple continues to do so.
Now, Indian production of iPhones is done by Foxconn and Tata, and Tata further expanded its presence by taking over operations previously done by Wistron and Pegatron. Apple is even thinking of production in the UAE, Saudi Arabia, and Brazil, where tariffs are merely 10%, but India appears to be the front runner when it comes to further expansion.
Unless Apple establishes new production centers in the UAE or Brazil, a dramatic increase in India’s manufacturing capacity is very likely to follow. New investment by Foxconn and Tata is estimated at crossing over $10 billion for iPhone exports to the U.S. during the current financial year. The ultimate outcome will depend upon evolving trade talks between the U.S. and other nations.
Samsung, which has depended so heavily on its Vietnamese manufacturing facilities, is also affected by the new tariff policy. Samsung exports about $55 billion worth of electronics from Vietnam, but increased duties could tip the scales in India’s direction. Manufacturing flagship devices like the Galaxy S25 and Fold in its Noida factory, Samsung could increase its U.S.-focused manufacturing from India in the near term.
Simultaneously, though, there were reports that producers like Apple might have to raise prices 30-40% in America to compensate for higher cost of production. This could mean higher prices on customers for products like iPhone, iPad, and MacBook for Apple if they cannot absorb the higher costs or repair their supply chain in time. News of such events will probably surface in weeks to come.
