Apple 'deals a blow to China', plans to move iPhone assembly for the US to India

Apple has revealed that it is planning to move the assembly of all iPhones sold in the US to India, according to the Financial Times.

Currently, the company still assembles most of its iPhones in China.

This could happen as early as next year, as the company tries to reduce its dependence on China following the current rising trade and tariff tensions between the US and China, foreign media write, reports Telegraph.

At the moment, Apple sells more than 60 million iPhones a year in the US, all of which could be manufactured in India by the end of next year, supporting Apple's goal to diversify its supply chain.

If so, current iPhone production in India would need to double, the FT reported on Friday.

In recent years, Apple has invested heavily in China, aiming to build a production line of advanced technology, which was vital for the company to establish itself as a global technology leader worth more than $3 trillion (2.7 trillion euros), according to the Companies Market Capitalization.

Apple uses a wide network of manufacturing partners and factories in China, such as Luxshare Precision Industry and Foxconn. These have extensive manufacturing plants in cities such as Zhengzhou, which is also known as the "City of the iPhone."

iPhones are also manufactured in other Chinese cities such as Wuhan, Shenzhen, Kunshan, Beijing, Tianjin, Huizhou and Guangzhou, with Apple also having a fairly complex assembly process.

However, China has now been hit by US tariffs of up to 145%, while it has also imposed its own tariffs against the US, of up to 125%.

Although the US government has recently stated that it is willing to compromise with China and is also reportedly considering reducing some of these tariffs, Apple's supply chain could still be affected.

Apple's stock price closed 1.8% higher on Thursday on the NASDAQ exchange. However, it has fallen 5.6% in the past month. /Telegraph/