Summary of "Behind Apple’s Decision to Make iPhones in India"
WSJ Tech News Briefing
Release Date: August 8, 2025

In this episode of the WSJ Tech News Briefing, hosted by Bell Lin from The Wall Street Journal, two primary topics are explored: the implications of parental monitoring of children's smartphones and Apple's strategic decision to shift iPhone manufacturing to India in response to U.S. tariff threats.

1. Parental Access to Children's Smartphones

Discussion Participants:

• Bell Lin – Host
• Julie Jargan – Family and Tech Columnist

Key Points:

• The Necessity of Knowing Passcodes (01:34): Julie Jargan emphasizes the critical importance for parents to have access to their children's phone passcodes. She explains that in cases of emergencies or tragic events, access to a child's phone can provide vital clues about their well-being and potential threats they may be facing.

  "Because if something unfortunately horrible happens... the phone can hold a lot of clues to what might be going on with a child." – Julie Jargan [01:34]

• Transparency with Children (02:21): Jargan advocates for transparency when parents decide to monitor their children's devices. She believes that open communication fosters trust and makes children more receptive to parental guidance.

  "It’s just good parenting practice to be open and up front." – Julie Jargan [02:30]

• Areas to Monitor (03:04): The conversation outlines specific areas parents should check on their children's phones, including social media activities, direct messaging, text messages, and location sharing. Jargan suggests focusing on areas relevant to the child's behavior and potential risk factors, such as bullying in group chats.

  "If your child is... in group chats where there's bullying, maybe you focus on the group chats." – Julie Jargan [03:04]

• Parental Control Technologies (04:04): While acknowledging the existence of parental control settings and third-party monitoring apps, Jargan expresses skepticism about their reliability. She points out that these tools can miss critical information or generate false alarms, underscoring the need for active parental involvement rather than solely relying on technology.

  "I feel like you can't rest easy and expect tech to do that job for you." – Julie Jargan [04:15]

2. Apple's Strategic Shift to India for iPhone Manufacturing

Discussion Participants:

• Bell Lin – Host
• Tripti Lahiri – WSJ South Asia Bureau Chief

Key Points:

• Preempting Tariffs (05:27): Apple’s move to manufacture iPhones in India is highlighted as a strategic response to potential tariff increases proposed by President Trump. By shifting production to India, Apple aims to mitigate the impact of these tariffs.

  "Moving more of Apple's iPhone manufacturing to India and shifting it out of China has been one of CEO Tim Cook's secret weapons in getting ahead of President Trump's recent tariff threats." – Bell Lin [05:27]

• Tariff Exemptions and Costs (06:28): Lahiri explains that currently, iPhones manufactured in India do not incur tariffs, allowing Apple to avoid the 20% tariffs imposed on iPhones from China. However, she notes uncertainty about the longevity of this exemption. Apple is already facing significant tariff-related costs, amounting to approximately $800 million in the June quarter and an expected $1.1 billion in the next quarter.

  "So for iPhones from India, Apple is actually being able to take advantage of an exemption that's in place right now... Apple is paying about 20% on iPhones from China." – Tripti Lahiri [06:28]

• Historical Context and Strategy (07:56): The decision to begin manufacturing in India dates back nearly a decade, with significant momentum gained during the first Trump administration. A pivotal meeting between Tim Cook and Indian Prime Minister Narendra Modi in 2016 set the stage for this strategic shift. Initially, only a small number of phones were produced in India, but production has since grown substantially.

  "At one point there was a time when just every iPhone was likely coming out of China... but following a meeting between Tim Cook and Indian prime minister Narendra Modi around 2016, the following year a very small number of phones started to be produced in India." – Tripti Lahiri [07:56]

• Current Production Landscape (08:38): As of 2024, estimates suggest that India accounts for approximately 14% of Apple’s iPhone production, with expectations that this share will double within the year. Despite this growth, China remains dominant, responsible for around 80% of final assembly, and plays a crucial role in producing numerous iPhone components.

  "China still is really important... when you talk about the final manufacturing, China's at around 80% still so pretty significant number." – Tripti Lahiri [08:41]

• Challenges and Future Prospects (09:31): Lahiri discusses the challenges India faces in matching China's manufacturing capabilities, citing a significant gap in precision manufacturing expertise. Despite these hurdles, India is actively enhancing its manufacturing infrastructure and supply chain processes, aiming to gradually reduce dependence on China, though some estimates suggest it may take 15 to 20 years to close the gap.

  "It's very difficult to get absolute numbers... but there's a huge difference in capabilities. India may be 15 to 20 years away from where China is today." – Tripti Lahiri [09:31]

Conclusion

This episode of Tech News Briefing provides insightful discussions on two distinct yet impactful technology-related topics. Julie Jargan underscores the critical role of parental oversight in ensuring children's safety in the digital age, while Tripti Lahiri elucidates Apple's strategic maneuvering to navigate international trade challenges by diversifying its manufacturing base. Together, these segments highlight the intersection of technology with personal safety and global economic strategies.