Evaluations indicate it is unrealistic for Apple to transfer iPhone production processes from China to India in response to tariff policies from the Donald Trump administration.
According to CNBC on the 26th (local time), noted analyst Craig Moffett of the market analysis firm Moffett Nathanson projected this in a memo sent to clients the previous day. Moffett has been recognized multiple times as a 'top analyst' by institutional investors.
Earlier, the Financial Times reported that Apple plans to transfer its production base from China to India by increasing flights to transport iPhones from India to the U.S. and aims to produce all iPhones sold in the U.S. in India by the end of next year.
The speculation about Apple's transfer emerged due to the 'tariff war.' China has faced a so-called 'fentanyl tariff' of 20% and a reciprocal tariff of 125% from the U.S. However, India has a reciprocal tariff of 26% and, like other countries excluding China, only faces a 10% basic tariff through a 90-day grace period.
Moffett said, "Significant problems arise due to tariffs, and transferring to India will not solve all the issues. Of course, it may help to some extent, but it's uncertain what the outcome will be."
He added, "Ultimately, consumers will bear the costs associated with tariffs, leading to a longer replacement cycle for smartphones and a slower upgrade pace, which will result in decreased demand," noting that "all of this could lower next year's performance outlook."