The stable $999 price of the new iPhone Air is a testament to a masterful, behind-the-scenes ballet of global supply chain management, with India playing an increasingly starring role. As US-China trade tensions simmer, Apple’s strategic shift to ramp up production in India has become a critical defense against crippling tariffs.
This diversification is a long-term play by CEO Tim Cook to de-risk Apple’s manufacturing footprint, which has historically been heavily concentrated in China. By building out production capabilities in India, Apple not only accesses a new, massive domestic market but also creates a vital alternative for manufacturing products destined for the US and Europe.
This move allows Apple to sidestep tariffs aimed specifically at Chinese-made goods, giving it a crucial buffer to keep consumer prices in check. Without the Indian production lines, Apple would face a stark choice between absorbing billions in costs or passing them on to customers, potentially leading to the dreaded “$2,000 iPhone.”
So, when customers unbox their new titanium iPhone Air, its price tag will be a reflection of not just its technology, but also of a complex geopolitical and logistical strategy. The shift to India is a pivotal chapter in Apple’s operational history, ensuring its products remain accessible amid global economic uncertainty.