In a significant shift in global manufacturing dynamics, India has surpassed China in exporting iPhones to the United States. This change, driven by escalating trade tensions and strategic supply chain realignments, marks a pivotal moment for Apple’s production strategy.
📦 Surge in Indian iPhone Exports
In April 2025, iPhone exports from India to the U.S. soared by 76% year-over-year, reaching approximately 3 million units. Conversely, shipments from China plummeted by 76% to around 900,000 units. This marks the second consecutive month where India has outpaced China in supplying iPhones to the American market
🔄 Apple’s Strategic Shift
Apple’s move to diversify its manufacturing base began during the COVID-19 pandemic but has accelerated due to recent U.S. tariffs on Chinese imports. President Trump’s administration imposed a 30% duty on iPhones from China, compared to a 10% baseline for imports from other countries, including India . To mitigate these impacts, Apple has been increasing production in India, with CEO Tim Cook indicating that most iPhones sold in the U.S. by the June quarter will be manufactured in India .
🏭 Investments in Indian Manufacturing
Apple’s suppliers, including Foxconn, have significantly invested in expanding production facilities in India. Foxconn’s recent $1.5 billion investment underscores Apple’s commitment to the region . India currently contributes to 18% of global iPhone production, projected to rise to 32% in 2025 .
⚠️ Challenges Ahead
Despite the progress, challenges remain. India’s current production capacity may not satisfy U.S. iPhone demand—20 million units quarterly—until 2026 . Additionally, manufacturing in India is estimated to be 5% to 8% more expensive than in China . Furthermore, President Trump has threatened a 25% tariff on iPhones made in India, insisting that Apple manufacture iPhones in the U.S. .Moneycontrol
🌐 Global Implications
India’s rise as a manufacturing hub for iPhones signifies a broader trend of companies seeking to diversify their supply chains amid geopolitical uncertainties. While challenges persist, India’s growing role in Apple’s production strategy could reshape global manufacturing landscapes in the years to come.
