Apple Reportedly Shifts India-Made iPhones Toward U.S. as Tariff Tensions with China Deepen

Apple appears to be making strategic adjustments to its global supply chain, with the United States emerging as the dominant destination for iPhones manufactured in India. According to newly surfaced customs data, reported by Reuters, nearly 97% of iPhones exported by Foxconn from India between March and May 2025 were shipped to the U.S.—a dramatic increase from the 2024 average of around 50%.

This pivot aligns with Apple’s broader efforts to navigate ongoing U.S.-China trade friction, particularly tariffs on electronics imported from China, which remain significantly higher than those applied to Indian-made products.

iPhone Exports from India Surge—But Focus Narrowed

During the March–May period alone, Foxconn shipped iPhones worth $3.2 billion from India, with May accounting for nearly $1 billion. March was even more substantial, with a record $1.3 billion in iPhone exports. The vast majority of these shipments went to the U.S., sidelining previous destinations like the Netherlands, Czech Republic, and the U.K.

To put this in perspective: In the first five months of 2025, Foxconn exported $4.4 billion worth of iPhones to the U.S., surpassing the $3.7 billion shipped over all of 2024.

Apple’s Workaround for U.S.-China Tariffs

Apple has been accelerating its India production as a buffer against escalating U.S. tariffs on Chinese goods. While most U.S. trading partners face a 10% baseline import duty, China is contending with a far steeper levy—potentially reaching 55% under policies pushed by former President Donald Trump.

To avoid passing these added costs to U.S. consumers, Apple has chartered dedicated flights to move iPhones (including models like the iPhone 13, 14, 16, and 16e) directly from India to the U.S. This move alone accounted for roughly $2 billion in March.

The company has also lobbied Indian authorities to reduce customs clearance time at Chennai airport, a key export hub. Reports suggest Apple successfully pushed to cut wait times from 30 hours to just six.

While Apple's India ramp-up helps the company manage trade risks, it hasn't gone unnoticed by the U.S. President.

Tata’s Role Is Growing, Too

Foxconn isn’t alone in Apple’s India strategy. Tata Electronics, a newer but rising player in the iPhone supply chain, exported an average of 86% of its iPhones to the U.S. during March and April. That’s a stark shift from 2024, when just 52% of Tata’s iPhone shipments headed stateside.

India Gains, but High Costs Remain

India is poised to play a larger role in Apple’s manufacturing plans. Analysts at Counterpoint Research estimate that 25–30% of global iPhone shipments could be made in India by the end of 2025, up from 18% in 2024. However, high import duties on components still make device assembly in India more expensive compared to other markets.

Despite these cost challenges, India’s political stability and improving logistics infrastructure make it a viable alternative for Apple amid intensifying global trade pressures.