Apple has intensified its strategy to shift iPhone production out of China and is now routing nearly all India-assembled iPhones directly to the United States. Recent customs data revealed that between March and May 2025, approximately 97% of iPhones produced by Foxconn in India were exported to the U.S. This marks a sharp increase from 2024, when only about half of India’s iPhone shipments headed to America.
During this three-month period, iPhones worth $3.2 billion were shipped from India by Foxconn, with the vast majority sent to the United States. Notably, shipments in May alone neared $1 billion, ranking second only to the $1.3 billion peak recorded in March. This strategic redirection highlights Apple’s calculated move to avoid steep U.S. tariffs on Chinese exports.
By the end of May 2025, Foxconn had already exported $4.4 billion worth of iPhones to the United States, surpassing its total for all of 2024, which stood at $3.7 billion. Apple and Foxconn declined to comment on the data, but industry experts see the shift as a clear response to the growing trade tension between the United States and China.
Tariffs Drive Apple’s Manufacturing Pivot
The backdrop to Apple’s export realignment is the aggressive tariff policy pursued by former U.S. President Donald Trump. Under his administration, tariffs on Chinese electronics surged, reaching up to 55%. In comparison, Indian exports to the U.S. face a much lower base tariff of 10%. India was briefly threatened with a 26% “reciprocal” tariff, which was announced and later paused, but the lingering uncertainty has pushed Apple to diversify its supply chain.
Trump had previously voiced strong disapproval of Apple’s growing investments in Indian manufacturing. He reportedly told Apple CEO Tim Cook, “We are not interested in you building in India… we want you to build here.” Despite this political pushback, Apple appears determined to pursue its India-based production strategy due to its economic viability.
Apple Accelerates Indian Supply Chain Expansion
To ensure smooth logistics and reduce transit times, Apple has made several key moves. In March, the company chartered aircraft to deliver iPhone 13, 14, 16, and 16e models directly from Chennai to the United States. The total airlift was valued at roughly $2 billion. Apple also successfully lobbied Indian airport authorities to reduce customs clearance time at Chennai Airport from 30 hours to just six, streamlining the export process significantly.
These steps underscore Apple’s urgency to meet U.S. market demand while avoiding the cost burdens of China-based manufacturing.
India Emerges as a Key Production Hub
Industry analysts estimate that by the end of 2025, between 25% and 30% of all iPhones sold globally will be made in India. This would be a notable increase from 18% in 2024. Foxconn, Apple’s leading manufacturing partner, has been ramping up operations in Tamil Nadu, investing $1.5 billion into its local subsidiary to expand assembly capacity.
In addition, Tata Electronics—Apple’s smaller Indian iPhone supplier—has shown similar export trends. Between March and April, the company sent 86% of its production to the United States, compared to only 52% in 2024. Tata began exporting iPhones in July 2024 and is playing a growing role in Apple’s long-term strategy to shift away from China.
Apple aims to relocate a significant portion of its U.S.-bound iPhone production to India by 2026. This move is seen as a critical step to reduce its dependence on China and buffer itself from future trade conflicts.
Rising Tensions Complicate China Operations
While Apple’s India strategy gains momentum, it also faces friction from China. Reports indicate that Beijing has tightened restrictions on Chinese engineers and component suppliers working with Indian Apple facilities. This could present challenges for Apple as it transitions its manufacturing processes and supplier networks across borders.
Despite these hurdles, Apple is pressing forward. Its iPhone output from India has grown dramatically, and the company’s infrastructure investments reflect a long-term commitment to Indian production.
Challenges Remain for Indian Manufacturing
Although India has become a key player in Apple’s global supply chain, the country still faces obstacles. High import duties on smartphone components continue to make local production more expensive compared to other regions. Nevertheless, India remains attractive due to its labor pool, supportive government policies, and strategic geopolitical position.
The Indian government, led by Prime Minister Narendra Modi, has pushed aggressively to position the country as a global electronics manufacturing hub. Programs like the Production Linked Incentive (PLI) scheme offer financial support to smartphone makers, helping to offset the country’s high component tariffs.
