Apple Faces Hurdles as It Shifts Production from China to India

Recent news reveals that Apple is shifting its production base from China to India to reduce dependency on Chinese manufacturing. The recent report shows that the transition has faced multiple hurdles even though it offers potential benefits.

According to MSN, the recent tariff measures implemented by the U.S. President Donald Trump have made it essential for Apple to diversify its manufacturing beyond China. The U.S. raised tariffs on Chinese goods to 145%, prompting China to retaliate with 125% tariffs on American products.

iPhone Assembly Faces Local Hurdles

Apple continues to face issues regarding iPhone assembly in India. Apple demands high standards which the global manufacturers struggle to achieve according to industry analysts. Apple’s years-long experience with its supply chain in China stands as superior to the developing Indian manufacturing environment.

Reports show that Indian manufacturing facilities encounter elevated part rejections coupled with increased rigid inspection criteria. Production levels have slowed down because of this resulting in delivery schedule delays.

Tariffs and Trade Tensions Add to the Pressure

The other reason for the transition is the international trade situation. With the US applying tariffs on several Chinese products, Apple being impacted by tariffs is becoming increasingly alarming. By relocating part of its business to India, Apple aims to steer clear of the increasing expense of importing from China.

But even in India, Apple is not entirely free from challenges. Import duties on parts and delays in regulation sometimes cancel out the advantage the company hopes to achieve.

A Geopolitical Response

The political tensions between the US and China have been a primary driver in creating Apple’s strategy. The Apple shift due to geopolitical tensions is one among many corporate moves towards diversified manufacturing bases.

India has been a major alternative because of its huge workforce, government incentives to manufacture electronics, and increasing digital infrastructure. Still, according to experts, Apple has a long way to go before it achieves the efficiency and scale it had in China.

Apple’s Careful Approach

The trade conflict challenges have brought forth a deliberate and well-considered response from Apple. Instead of a rapid exit from China, the company is balancing production between the two countries. It continues to work with Chinese suppliers while training and investing in Indian partners.

Apple has also teamed up with global manufacturers like Foxconn, Pegatron, and Wistron in India to improve output quality and increase capacity over time.

The current production rate demonstrates a tactical transition for Apple to India rather than a total factory relocation. The company expects to grow its operations in India carefully to maintain high quality standards without compromising performance.

The story of how Apple shifts to India from China reflects broader global shifts in manufacturing, driven by trade policies, geopolitical uncertainty, and the need for diversified supply chains.