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According to McGee, while iPhones may be “made” in India for final assembly, thousands of miniature and complex components come from China. This dependency means that any claims about iPhone production moving out of China can be misleading.
For Apple’s last two financial quarters, CEO Tim Cook reiterated that iPhones sold in the U.S. were assembled in India to avoid Trump’s tariffs on products exported from China. However, McGee points out that these iPhones remain dependent on a China-centric supply chain and could cause unwanted friction with Beijing and Chinese consumers.
McGee explains: “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.” He adds that the depth and breadth of the supply chain haven’t moved and will take years and cost billions of dollars to fully transition.
Despite McGee’s insights, Apple has managed to escape Trump’s tariffs. As for the possibility of moving iPhone production to the U.S., Bloomberg’s Mark Gurman has stated that no universe exists where this is a feasible option due to the enormous time and money required.
China continues to monitor these developments closely. A previous report mentioned that Chinese authorities were blocking an Apple supplier’s equipment from being shipped out of the country, forcing companies to use ingenious tactics to move necessary paraphernalia without being discovered or penalized.
News Source: [Patrick McGee](https://twitter.com/PatrickMcGee_/status/1952424886674268536)
📚 Reading Comprehension Quiz
According to McGee, what is a key characteristic of iPhone production in India compared to China?
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