America remains vital for Apple as it brings in most smartphone money. New tariffs will soon cut into buying power, hurting the company's profits. Apple tried moving iPhone manufacturing from China to India to avoid these taxes. However, one expert calls this plan impossible because it will not protect Apple from other costs.
The trade fights between America and China affect both expenses and sales. Moving work to India might lower some costs, but it leaves other problems unsolved. India makes about 20 percent of all iPhones today, showing room for growth. Cheaper labor helps keep profits up, but simply changing where phones are put together will not fix the tariff problem. All iPhone parts must still come from overseas, which means Apple must keep its suppliers in China for many years.
Chinese officials block Apple partners from sending important machines abroad, forcing companies to devise clever ways to move equipment. Putting phones together elsewhere might save money later, but making parts elsewhere seems almost impossible. A single iPhone contains hundreds of different pieces, making this challenge extremely difficult for Apple to overcome.
The trade fights between America and China affect both expenses and sales. Moving work to India might lower some costs, but it leaves other problems unsolved. India makes about 20 percent of all iPhones today, showing room for growth. Cheaper labor helps keep profits up, but simply changing where phones are put together will not fix the tariff problem. All iPhone parts must still come from overseas, which means Apple must keep its suppliers in China for many years.
Chinese officials block Apple partners from sending important machines abroad, forcing companies to devise clever ways to move equipment. Putting phones together elsewhere might save money later, but making parts elsewhere seems almost impossible. A single iPhone contains hundreds of different pieces, making this challenge extremely difficult for Apple to overcome.
