- Wednesday, July 16, 2025
Apple has redirected nearly all iPhones made in India to the US, bypassing China amid rising tariffs. With $4.4 billion in shipments already in 2025, India is cementing its role as Apple’s key export and manufacturing hub.
By: Vibhuti Pathak
Apple has dramatically shifted its iPhone export strategy, with nearly all iPhones assembled by Foxconn in India between March and May 2025 heading directly to the United States.
This move is a clear response to escalating US tariffs on Chinese goods, as Apple seeks to minimize costs and maintain its dominant position in the American smartphone market.
Record-Breaking Shipments from India
Customs data reviewed by Reuters reveal that Foxconn exported $3.2 billion worth of iPhones from India during the three-month period, with an astonishing 97 per cent of these shipments bound for the US.
This marks a sharp increase from the 2024 monthly average, when just over half of Indian-made iPhones were sent to the US, with the rest distributed to markets like the Netherlands, Czech Republic, and the UK.
May 2025 alone saw nearly $1 billion in iPhone exports to the US from Foxconn’s Indian factories—the second-highest monthly tally ever, following a record $1.3 billion in March.
In the first five months of 2025, Foxconn’s India-to-US iPhone shipments have already reached $4.4 billion, surpassing the full-year total of $3.7 billion in 2024.
Apple’s Supply Chain Strategy Amid Tariff Threats
The shift in export patterns comes as the US, under President Donald Trump, prepares to impose even steeper tariffs on Chinese products. Trump recently announced plans for a 55 per cent tariff on Chinese goods, pending final approval, in a bid to reduce reliance on China.
India, meanwhile, faces a baseline 10 per cent US tariff but is negotiating to avoid a 26 per cent “reciprocal” duty that was announced and then paused earlier this year.
To ensure uninterrupted supply, Apple has gone as far as chartering planes to fly iPhone 13, 14, 16, and 16e models worth $2 billion directly from India to US buyers in March.
The company is also pressuring authorities at Chennai airport—its main export hub—to reduce customs clearance times from 30 hours to just six, further streamlining the export process.
India’s Growing Role as an iPhone Export Hub
India is rapidly emerging as a key manufacturing and export base for Apple. Once considered a secondary assembly location, India now plays a central role in Apple’s global supply chain.
Tata Electronics, Apple’s newer Indian supplier, has also ramped up exports, sending 86 per cent of its March-April iPhone output to the US, up from 52 per cent in 2024.
Despite higher local assembly costs due to import taxes on components, India’s strategic importance is rising as Apple diversifies away from China. Chinese smartphone exports to the US have plummeted, while India’s exports surge, signaling a major shift in global electronics supply chains.
Apple’s decision to reroute nearly all Indian-made iPhones to the US underscores the tech giant’s adaptability amid global trade tensions.
With Foxconn and Tata Electronics leading the charge, India is poised to become an even bigger player in the global smartphone manufacturing landscape as Apple seeks to insulate itself from geopolitical risks and tariff shocks
