Apple Reroutes India iPhone Exports to US Market

Between March and May 2025, nearly all iPhones exported by Foxconn from India were sent to the United States, marking a significant shift in Apple’s global supply chain strategy. Customs data reviewed by Reuters reveals that 97% of iPhones exported during this period went to the U.S., a sharp increase from the 2024 average of 50.3%. The shift underscores Apple’s accelerating efforts to reduce its reliance on Chinese manufacturing and navigate escalating U.S.-China trade tensions.

The export data shows Foxconn, Apple’s largest contract manufacturer, shipped $3.2 billion worth of iPhones from India to the United States during the three-month span. May alone accounted for nearly $1 billion, making it the second-highest monthly total after March’s record $1.3 billion. In comparison, the entire value of Foxconn’s India-to-U.S. iPhone exports in 2024 was $3.7 billion. The $4.4 billion worth of shipments recorded in just the first five months of 2025 signals a dramatic acceleration of Apple’s pivot toward India as a key export hub.

This redirection of exports represents a calculated response to the geopolitical and economic challenges Apple faces under heightened trade barriers. The United States has continued to impose steep tariffs on goods imported from China, part of a broader protectionist stance revived under the administration of President Donald Trump. These tariffs—some reaching as high as 55%—make Chinese-assembled iPhones significantly more expensive for American consumers.

India, by contrast, is subject to a 10% baseline tariff like most of America’s trading partners. Though the threat of an additional 26% reciprocal levy remains on the table, it was paused in April, offering temporary relief for companies like Apple operating in India. By rerouting iPhones through India, Apple can substantially mitigate the cost impact of U.S. tariffs.

Apple has also invested in logistical enhancements to support this shift. In March, it chartered cargo planes to deliver iPhone 13, 14, 16, and 16e models worth approximately $2 billion from India to the U.S., highlighting the urgency of avoiding tariff-related costs. Additionally, the company has lobbied Indian authorities to streamline export procedures, particularly at Chennai airport in Tamil Nadu, a central node in its India operations. Apple reportedly sought to reduce customs clearance time from 30 hours to just six, to expedite the supply chain and support higher output volumes.

Tata Electronics, a newer entrant in Apple’s supply chain, has also played a growing role. The company began exporting iPhones in July 2024 and has since rapidly scaled up. Between March and April 2025, it shipped an average of 86% of its iPhone output to the U.S., compared to a 52% share over the course of 2024. While Tata’s data for May is not yet available, the existing figures indicate a clear alignment with Apple’s broader export strategy.

Analysts expect this trend to intensify. According to Counterpoint Research, iPhones produced in India could account for as much as 30% of global iPhone shipments by the end of 2025, up from 18% in 2024. If achieved, this would mark a significant rebalancing of Apple’s global manufacturing footprint, long dominated by Chinese facilities.

Despite this shift, India remains a complex production environment. Although Prime Minister Narendra Modi has prioritized making India a global electronics manufacturing hub, high import duties on smartphone components still pose challenges. These levies raise the cost of assembly, making Indian-made devices more expensive to produce compared to those in other manufacturing hotspots like Vietnam or China.

Nevertheless, the strategic imperatives for Apple to diversify production outside China are mounting. Beyond tariffs, the company faces increasing regulatory scrutiny and operational risks in China, including disruptions from COVID-era lockdowns, labor protests, and shifting political dynamics. Moving more production to India serves both to mitigate these risks and to align with broader geopolitical shifts favoring supply chain diversification.

Apple’s production realignment also carries broader implications for India’s role in global technology supply chains. As firms like Foxconn and Tata Electronics ramp up output for international markets, India’s profile as a high-tech manufacturing center is rising. However, sustaining this momentum will require continued policy reforms and infrastructure investments to ensure competitiveness on cost, quality, and speed.

With over 60 million iPhones sold annually in the U.S., the stakes are high for Apple to maintain stable and cost-effective supply lines. As of early 2025, approximately 80% of these devices were still made in China. However, the latest export trends suggest that Apple is prepared to dramatically reshape that equation, making India central to its long-term strategy in an increasingly protectionist world.