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Apple ‘aims to source all US iPhones from India', reducing reliance on China

1. Apple plans to shift iPhone assembly to India by 2026, reducing Chinese reliance. 2. The company aims to increase Indian production to over 60 million iPhones annually. 3. Apple is currently exposed to a 20% levy on Chinese imports despite tariff exclusions. 4. Experts doubt feasibility of U.S.-based iPhone manufacturing due to high costs. 5. Current production constraints in the U.S. make local assembly impractical.

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FAQ

Why Bullish?

Transitioning production to India may reduce tariff costs long-term, benefiting profit margins, similar to previous demand responses seen during global supply chain shifts.

How important is it?

Strategic moves to shift production can significantly improve profit margins amidst ongoing geopolitical tensions, making this a critical factor for investors.

Why Long Term?

The positive impact hinges on successful production relocation and tariff resolutions over several years, evidenced by past adjustments in Apple’s supply chain that led to sustained profitability.

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