Apple Shifts 97% of India iPhone Exports to US: Apple is shifting its supply chain to avoid US tariffs on Chinese goods. Between March and May 2025, Foxconn sent 97% of its India iPhone exports to the US, a sharp rise from the 2024 average of 50%.
The move helps Apple bypass high tariffs on Chinese-made iPhones. India has become a key manufacturing hub for Apple. The US remains Apple’s biggest market, driving this strategic shift.
Also Read | Wall Street Dips Amid Middle East Tensions and Boeing Stock Decline
Apple Shifts 97% of India iPhone Exports to US: Insights
- 97% of Foxconn’s India iPhone exports went to the US in early 2025.
- Apple is reducing reliance on China due to rising US tariffs.
- India’s iPhone exports to the US hit $4.4 billion in just five months.
- Apple is speeding up production and customs clearance in India.
- Tata Electronics, another Apple supplier, also increased US shipments.
Background
Apple has been expanding production in India for years. Prime Minister Narendra Modi has pushed India to become a smartphone manufacturing hub. However, high import duties on components make production costly. In 2024, only 50% of India iPhone exports went to the US.
The rest went to Europe and other markets. However, rising US-China trade tensions forced Apple to rethink its strategy.
Main Event
Customs data reveals a major shift in Apple’s export strategy. From March to May 2025, Foxconn shipped India iPhone exports worth $3.2 billion. A staggering 97% went to the US. In May alone, shipments hit $1 billion. This is the second-highest monthly total ever.
Apple chartered flights to speed up deliveries. It also pushed Indian airports to cut customs clearance time. Chennai airport now processes iPhone shipments in six hours instead of 30.
Tata Electronics, Apple’s other Indian supplier, also increased US shipments. From March to April, 86% of its iPhones went to the US, compared to only 52% in 2024.
President Trump criticized Apple’s India expansion. He wants more iPhones made in the US. Yet, Apple continues to boost India iPhone exports to avoid China tariffs.
The newest iPhone lineup showcased at Apple’s retail location inside Manhattan’s historic Grand Central Station during fall 2024.
Photo Credits: REUTERS.
Implications
- For Apple: Lower costs by avoiding China tariffs.
- For India: More jobs and investment in manufacturing.
- For the US: Cheaper iPhones but potential trade tensions.
- For China: Loss of manufacturing dominance.
Conclusion
Apple’s shift to India is reshaping global supply chains. Experts predict India iPhone exports will make up 30% of global shipments by 2025. With US-China trade tensions rising, India’s role will only grow. However, political pressures could challenge this strategy in the future.
