Apple Stock Plunges Amid US Tariffs on China, India, Vietnam

New Delhi, Apr 3 (PTI) The reciprocal tariffs by US on Thursday shoved Apple's shares into a downward spiral - with the stock seeing its sharpest drop in five years on US bourses - as the Cupertino, California-headquartered company's Asian supply chains and production hubs in markets like China, India and Vietnam stared at levies ranging from 24 per cent to 54 per cent.

The US imposed tariffs on Apple's big manufacturing touchpoints, many of them in Asia. Vietnam faced 46 per cent tariffs, and India landed relatively softer at 27 per cent. China -- where Apple has significant manufacturing presence despite its supply chain diversification efforts -- took the hardest knock with 34 per cent tariffs being imposed on top of a previous 20 per cent levy.

While the iPhone maker still produces a significant chunk of US-sold devices on Chinese soil, its suppliers and manufacturing hubs are spread across many other nations like Taiwan, India and Vietnam.

Apple shares tumbled up to 9 per cent and the company lost an estimated USD 250 billion in market value on Thursday.

According to industry sources, iPhones constitute the largest share of telecom products exported from India to the United States.

India Cellular and Electronics Association (ICEA) on Thursday said India is "favourably positioned" amid US reciprocal tariff regime.

"The strategic placement of India in the initial round of reciprocal tariff announcements underscores the extraordinary and relentless efforts made by our negotiators and leadership. Our favourable positioning compared to major electronics-exporting nations, especially China and Vietnam, is a crucial development that we must immediately leverage," Pankaj Mohindroo, Chairman of ICEA, said.

However, the genuine long-term inflection point for India's electronics trade with the US lies in the swift and successful conclusion of a comprehensive Bilateral Trade Agreement (BTA), he added.

iPhone exports from India are estimated to be around USD 13 billion and it is one of the major export telecom products from the country to the US.

Analysts had predicted that Apple may shift 25 per cent of its iPhone production to India.

The Apple ecosystem is the biggest job creator in India. According to government sources, Apple's vendors and suppliers employ 1.5 lakh people in India. Tata Electronics, which runs two plants for Apple, is the biggest job generator.

According to Counterpoint Research, Apple has been increasing iPhone production in India through its contract manufacturers Foxconn and Tata Electronics.

"Foxconn Hon Hai's volumes in India grew 19 per cent YoY in 2024 propelled by increasing shipments of the iPhone 14, iPhone 15 and iPhone 13 models. Tata Electronics (earlier Wistron) was the fastest growing smartphone manufacturer in India in 2024 with 107 per cent YoY growth. The iPhone 15 and iPhone 16 models were the major volume contributors here," the research firm said.