Apple is rapidly shifting its iPhone production and export strategy, sending a record number of India-made devices to the United States to sidestep rising trade tensions with China.
According to Indian customs data, Foxconn exported iPhones worth $4.4 billion from India to the U.S. between January and May 2025, already surpassing the total $3.7 billion exported in all of 2024.
From March to May alone, 97% of Foxconn’s iPhone exports by value from India were shipped to the U.S., up sharply from about 50% during the same period in 2024.
Why Is Apple Ramping Up India Exports?
This shift comes as U.S. President Donald Trump announced new 55% tariffs on Chinese goods, part of a draft agreement between the U.S. and China. Though the final approval from both leaders is still pending, the move signals a more aggressive trade stance by the U.S.
Apple, which sells over 60 million iPhones annually in the U.S., has traditionally relied on Chinese factories for over 80% of that supply. But with tariffs on Chinese goods reaching triple digits in recent years, Apple has been forced to diversify its manufacturing base.
India, in comparison, is subject to a standard 10% U.S. tariff, and is currently negotiating to avoid a potential 26% “reciprocal” duty, which Trump announced in April and later paused.
India Becoming a Key iPhone Hub
Foxconn, Apple’s primary manufacturing partner, has significantly increased its production capacity in India. The country is quickly becoming a global hub for smartphone assembly as Apple and other tech giants reduce their dependency on China.
Experts believe Apple’s long-term strategy involves making India a major export base not just for the U.S. but for other global markets as well.
With India’s growing role in global electronics manufacturing and its relatively stable trade ties with the U.S., Apple’s shift could bring billions in fresh investment to the Indian economy over the next few years.
Key Highlights:
Foxconn exported $4.4B worth of iPhones from India to the U.S. in Jan–May 2025.
97% of India’s iPhone exports by Foxconn (Mar–May) went to the U.S.
Apple aims to avoid Trump’s proposed 55% tariffs on China-made goods.
India is subject to only a 10% U.S. tariff and is negotiating to avoid a higher reciprocal duty.
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