Apple’s first physical retail store is located in the populous city of Mumbai.
Punit Paranjpe | Afp | Getty Images
For years, Tim Cook has been bullish on India. Now, he’s betting big on the South Asian giant as Apple shifts its focus away from China and expands its footprint in India.
Still, analysts told CNBC the iPhone-maker’s dependency on China will remain for years to come.
There’s potential for India to “become the next China” for Apple production, but it could take as long as a decade before it happens, said Martin Yang, senior analyst of emerging technologies at Oppenheimer & Co.
Apple is set to open its second India retail store in Delhi Thursday, two days after opening its first in Mumbai.
The Cupertino-based tech giant still has a strong presence in China due to its supply chain partners, and China’s infrastructure capabilities are still far better thanwhat India can offer, Nitin Soni, senior director at Fitch Ratings told CNBC.
“It will take Apple years to diversify away from China,” Soni said. “The country is still a very large pocket for Apple — not just in the assembly line, but the semiconductor ecosystem and testing as well.”
Apple’s efforts to move its assembly of products from China became more urgent in the last five years as U.S.-China trade tensions intensified, and supply chain disruptions caused by Beijing’s zero-Covid policy unraveled. The iPhone maker had to scale back production in China due to those restrictions, a move that hurt its bottom line.
The population growth and pure opportunity around India is the golden goose for Apple.
Dan Ives
Wedbush Securities
It is also highly unlikely that Apple will be able to completely eradicate its reliance on China, said Navkendar Singh, an associate vice president with International Data Corporation (IDC) India.
“Given the cost scales, logistics, and sheer inertia of some of the suppliers in the ecosystem in China, it’s very unlikely that Apple can completely remove itself from China,” Singh highlighted.
Nevertheless, Apple’s growth in India has only just begun and numerous opportunities await in both manufacturing production and retail sales in the country.
Apple’s ambitions for India
India is the second largest smartphone market worldwide for annual shipments and sales, accounting for almost 12% of the global market, according to data from IDC.
According to the market intelligence firm, Apple shipped 6.7 million iPhones in 2022 from India, a surge from 4.8 million devices in 2022. It stands at the sixth position after the U.S., China, Japan, U.K., and Germany for global iPhone shipments in 2022.
“The population growth and pure opportunity around India is the golden goose for Apple. It’s been a difficult market to ramp for Apple on the iPhone front over the years but now is clearly starting to find its stride,” Dan Ives, analyst at Wedbush Securities, said.
The technology giant currently manufactures 5% to 7% of its iPhones in India, a leap from just 1% in 2021 — and there’s no stopping there with further plans in the works to increase the company’s prominence in the country.
“China and the US along with Europe remain the hearts and lungs of the Apple story with India set to become a top 5 market focus for Apple. High hopes India can be a major incremental growth driver for Cupertino in the years ahead,” Ives told CNBC via email.
Although the Indian government said in January that Apple is aiming to make 25% of all of its iPhones in India, Ives said that’s a “lofty” goal and hitting 10% to 15% of production seems more realistic in the long term.
India will also continue to play second fiddle to Vietnam in the production of more sophisticated products such as the MacBooks, but smaller products such as Apple’s smart watches and AirPods being manufactured in India soon, Singh said.
There is such a concentration of the market in the urban centers, and Delhi and Mumbai “make up almost a quarter of the market for Apple [in India],” IDC’s Singh said, adding that more physical stores could open by the middle of 2024.
India’s rising middle class
IDC data showed Apple only has a 5% market share in India since low-to-mid-tier priced devices continue to be consumers’ top choices.
However, the country’s increasing adoption in technology and stronger spending power from consumers will generate higher iPhone sales, Fitch’s Soni said.
“We see that the middle class is becoming more affluent and moving towards the upper middle class, and there is an increasing trend of customers buying flagship smartphones,” Soni said. “This is also helped by the fact that 4G is now easily available all over India.”
But cheaper labor costs in India will not reduce the costs of Apple’s iPhones as customers would be willing to pay premium prices for Apple products, Singh said.
Apple will not reach the “price point of the mass market,” he said. “It remains a premium brand and they would love to keep that brand halo in place.”
Singh added that the company may instead offer schemes or bank tie-ups to make products more affordable.
— CNBC’s Arjun Kharpal contributed to this report.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.