Apple Inc. has significantly increased its shipments of iPhones from India to the United States in recent months, a strategic move aimed at shielding its American sales from the growing impact of U.S. tariffs on Chinese-manufactured goods. The development marks a notable shift in the company’s supply chain dynamics as global trade tensions continue to escalate.
According to customs data reviewed by Reuters, between March and May 2025, an overwhelming 97% of the iPhones exported from India by Apple’s manufacturing partner Foxconn—formally known as Hon Hai Precision Industry Co., Ltd—were destined for the U.S. market. This figure represents a sharp increase from the 2024 average, when just over half of iPhones exported from India were sent to the United States.
This dramatic rise underscores a decisive reconfiguration of Apple’s supply chain strategy, driven largely by evolving geopolitical pressures. The realignment comes in the wake of renewed trade protectionism advocated by President Donald Trump, who has been vocal about discouraging Apple from investing in manufacturing facilities outside the United States.
Trump recently criticized Apple’s move to shift production to India, recalling a previous conversation with Apple CEO Tim Cook. “We are not interested in you building in India, India can take care of themselves, they are doing very well, we want you to build here,” he said. His comments also included a threat of imposing a steep 25% tariff on iPhones manufactured outside the United States.
The financial implications of this shift are already evident. In just the first five months of 2025, Foxconn exported $4.4 billion worth of iPhones from India to the United States. This amount has already exceeded the total value of $3.7 billion recorded for the entire year of 2024. Notably, Apple even resorted to using chartered aircraft in March to transport $2 billion worth of iPhones directly from India to its American consumer base, highlighting the urgency and scale of this pivot.
The decision to reroute a substantial portion of its iPhone production to India signifies Apple’s broader response to rising geopolitical instability and trade-related risks. With increasing U.S. tariffs on Chinese goods, India is emerging as a crucial alternative in Apple’s global manufacturing footprint. The move helps Apple maintain reliable access to its most important market, the United States, despite turbulent international trade relations.
Analysts from Counterpoint Research project that by the end of 2025, India will account for between 25% and 30% of Apple’s global iPhone production. This would be a significant jump from the 18% recorded in 2024, illustrating the speed at which Apple is scaling up its operations in the South Asian country.
Apple’s strategic maneuvering appears to be paying off in financial terms as well. For its fiscal second quarter, the company reported revenue of $95.36 billion, exceeding Wall Street’s forecast of $94.53 billion. It also posted earnings per share of $1.65, slightly ahead of the projected $1.63. These results suggest that despite the logistical challenges and geopolitical hurdles, Apple has managed to sustain robust financial performance.
A key component of this success lies in iPhone sales, which reached $46.84 billion during the quarter. This marks an increase from $45.96 billion in the same period of the previous year. The iPhone continues to be Apple’s flagship product and a major revenue driver, especially in the U.S. market where demand remains consistently high.
Historically, Apple has sold over 60 million iPhones annually in the United States. Until recently, about 80% of these devices were produced in China. However, with the increasing strain in U.S.-China relations and the accompanying rise in tariffs, continuing this production model has become increasingly risky and less cost-effective.
Apple’s accelerated shift to India as a manufacturing hub serves multiple objectives. It not only insulates the company from potential tariff hikes but also aligns with broader trends among multinational corporations seeking to diversify their supply chains away from China. India offers a large labor force, improving infrastructure, and favorable government policies aimed at attracting high-tech manufacturing investments.
The company’s commitment to building a more resilient and diversified supply chain is evident in its proactive efforts, including chartering flights and significantly boosting output from Indian facilities. These steps signal Apple’s readiness to adapt quickly to global economic pressures while maintaining its stronghold in the lucrative U.S. market.
As Apple continues to navigate the evolving landscape of international trade and manufacturing, the company’s pivot to India could redefine the future of global electronics production. For now, the strategy appears to be yielding positive results, both in terms of operational flexibility and financial performance.
The transformation also sets a precedent for other tech firms grappling with similar challenges. By making a high-profile move away from heavy reliance on China, Apple is leading the way in crafting a more diversified and less politically vulnerable supply chain network. The continued success of this strategy will likely influence how other global companies structure their manufacturing and export operations in the coming years.
In summary, Apple’s decision to dramatically increase iPhone shipments from India to the United States illustrates a strategic response to the dual pressures of trade tensions and geopolitical uncertainty. With nearly all of its Indian-exported iPhones now reaching American shores, and with India poised to become a major global production hub, Apple is signaling a significant reorientation in its long-term global strategy.