Apple is set to benefit from India’s recent decision to remove import duties on various components crucial for smartphone manufacturing. This move is expected to reduce costs for Apple’s expanding supply chain in India. The Indian government has eliminated tariffs of 7.5% and 5% on inputs for wireless charging hardware, screens for automotive and medical devices, and lithium-ion battery cells, with these exemptions lasting until March 31, 2029. The removal of import costs for wireless charging components is particularly advantageous for Apple’s MagSafe ecosystem in the iPhone lineup, enabling local assembly partners to source and build these components domestically. As Apple shifts iPhone production from China to India, assembly partners are now responsible for manufacturing about a quarter of all iPhones, including the entire iPhone 17 lineup, for the first time. Foxconn has invested $1.5 billion to expand its operations in India, and Tata Electronics has emerged as a key manufacturing partner.
How Will India’s Tariff Exemptions Impact Apple’s Manufacturing?
