iPhone Export Boom: Apple Shifts Focus to India to Bypass Tariffs and Strengthen Global Presence
- By Scott 'TechTonic' Thompson
Most India-origin iPhones heading to the US
Foxconn, Apple's manufacturing partner, sent a staggering $4.4 billion worth of iPhones to the US from India between January and May—nearly twice the total exports from last year. This seismic shift in iPhone production and export reflects Apple's strategic maneuvering to bypass crippling US tariffs on Chinese goods and future-proof its supply chain.
according to exclusive data shared with Reuters. As Trump's administration mulls over a potential 55% tariff hike on goods from China, this shift in production and export strategy proves no less than a game-changer for Apple and the tech industry at large.
In the first five months of this year, Foxconn's iPhone shipments to the US from India outpaced last year's total, recording a whopping increase of 18.9%. Notably, over 97% of these iPhones found their way to the US market, making it Apple's primary export destination for Indian-produced devices [5].
Of course, this isn't about simply avoiding US tariffs—it's about diversifying Apple's supply chain and reducing dependence on a single region, China, prone to geopolitical tensions and supply chain disruptions. India, with its favorable business environment and government incentives, presents an appealing alternative [2][4].
One significant factor driving this strategic shift is the Indian government's Producer Linked Incentive (PLI) scheme. This policy provides substantial financial incentives to manufacturers looking to set up or expand operations in India. This support has bolstered the capacity of companies such as Foxconn and Tata Electronics to produce iPhones locally [2].
Moreover, India's strategic location offers attractive opportunities for exporting iPhones to other markets. With nearly 97% of Indian iPhone exports now destined for the US, it's clear that demand for Apple products remains sky-high in the world's largest economy [5].
By increasing production in India, Apple positions itself to account for 25% to 30% of global iPhone shipments by 2025, compared to 18% in 2024 [1][5]. Foresighted advocates of the move, such as Counterpoint Research senior analyst Prachir Singh, forecast a bright future for made-in-India iPhones.
Tata Electronics, Apple's other iPhone supplier in India, follows suit. Their shipments to the US have averaged 86% during March and April, with a considerable portion of those sales destined for the home of the Stars and Stripes [5].
So, while Apple has historically relied on more than 60 million iPhones worth of sales from the US annually, with approximately 80% of those devices manufactured in China, the expansion into India is poised to revolutionize Apple's production strategy and global market presence.
In summary, Apple is boldly embracing India as a key manufacturing hub, leveraging its government incentives, strategic location, and burgeoning manufacturing capabilities to maintain a strong global footing in a rapidly evolving international trade landscape. Although Trump may have had his reservations about Apple investing in India, the tech titan paves the way for a more resilient, diverse, and successful supply chain.
- The strategic shift in iPhone production and export to India, as illustrated by Foxconn's $4.4 billion shipments to the US, is not just a means to bypass US tariffs on Chinese goods, but also a move to diversify Apple's supply chain and reduce dependence on a single region, allowing technology companies to future-proof their supply chains.
- The Indian government's Producer Linked Incentive (PLI) scheme, which offers substantial financial incentives to manufacturers looking to set up or expand operations in India, has bolstered the capacity of companies like Foxconn and Tata Electronics to produce iPhones locally, thus contributing to the growth of technology manufacturing in India.
