Apple’s Continued Reliance on China’s Supply Chain: Veteran Reporter Reveals Impact on iPhones Manufactured in India Sold in the U.S., Leading to ‘Unwanted Friction’

In a strategic move to shift iPhone production away from China, Apple has significantly enhanced its assembly facilities in countries such as India. Recent reports indicate that a number of iPhone models sold in the United States are indeed assembled in India. However, this notion can be somewhat misleading. As detailed by journalist Patrick McGee, the production process remains deeply intertwined with China’s vast supply chain, indicating that a complete transition will demand years of development and substantial financial investment.

India as an Assembly Hub, But China’s Supply Chain Remains Critical

Over the last two financial quarters, Apple CEO Tim Cook has publicly stated that iPhones available in the U. S.are often sourced from India. This statement appears to be an effort to navigate around previous tariffs imposed on imports from China. Although Cook’s assertions are accurate, he neglects to highlight essential insights shared by renowned author Patrick McGee, known for his book Apple in China: The Capture of the World’s Greatest Company. McGee emphasizes that, despite the final assembly occurring in India, these iPhones are heavily reliant on a supply chain predominantly based in China. He warns that Apple’s strategy to diversify production could lead to significant tensions with both the Chinese government and consumers.

No iPhone is really “made” in India — yet. But if the final step is completed there, it’s a “substantive” change to the product and can therefore avoid tariffs.

But these iPhones are as dependent on the China-centric supply chain as every iPhone you’ve ever held. The depth and breadth of the supply chain hasn’t moved. Maybe, and hopefully, it will, but that would take years, cost tens of billions of dollars, and cause Apple unwanted friction with Beijing and Chinese consumers.

So yes, India is the “source, ” but only after 1, 000 parts (per iPhone) have been machined, fabricated, laser-welded, molded, shaped, etched, and fitted across an enormously complex, efficient and expensive web of factories in China involving up to 3 million workers per year.

After subassembly, it’s exported to India, for final assembly and packaging, a process involving tens of thousands of workers.

De-risking is in the future. At present, India-“made” iPhones are about avoiding Modi’s tariffs on China (for the Indian market) and avoiding Trump’s tariffs on China (for the US market).

While McGee’s observations shed light on the deeper issues at play, Apple has thus far managed to navigate around Trump’s tariffs with relative success. On the topic of whether iPhone production could eventually shift to U. S.soil, Bloomberg analyst Mark Gurman has previously stated that such a scenario is nearly impossible, given the time and financial resources required, rendering it an impractical endeavor.

Moreover, it’s important to note that China is not passively observing these developments. A prior report revealed that Chinese authorities have obstructed shipments of essential equipment from Apple suppliers, compelling these businesses to devise innovative strategies for smuggling out the required materials without detection or repercussions.

News Source: Patrick McGee

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