A significant shift in Apple’s global supply chain strategy has come to light, with data showing that almost all iPhones exported by Foxconn from India between March and May 2025 were shipped to the United States. The dramatic redirection marks a sharp contrast from previous distribution patterns and underscores Apple’s urgency to navigate around escalating tariffs on Chinese goods.
According to customs data accessed by Reuters, iPhones worth $3.2 billion were exported from India by Foxconn during the three-month period, with an average of 97 per cent heading to the U.S. market. This figure stands in stark contrast to the 2024 average, when only around half of India-made iPhones were destined for the United States.
May 2025 alone saw nearly $1 billion worth of Indian iPhone exports land in the U.S., just short of the all-time high of $1.3 billion in March. The volumes are a clear sign of Apple’s growing reliance on India-based manufacturing to serve its largest market and to cushion the impact of rising U.S. trade barriers against China.
The Biden administration has recently intensified its trade stance against Beijing, continuing a legacy of high tariffs set during Donald Trump’s presidency. A new tariff framework agreed in principle—pending final approval—would see Chinese tech products facing levies as steep as 55 per cent. India, by contrast, currently faces a baseline 10 per cent tariff but is negotiating to avoid an additional 26 per cent levy that was announced and then suspended earlier this year.
In a recent public statement, former U.S. President Donald Trump criticised Apple’s increasing investment in India. Recalling a conversation with CEO Tim Cook, Trump remarked, “We are not interested in you building in India… we want you to build here.” Despite such political pressure, Apple appears to be doubling down on its India strategy.
Industry analysts say the trend is only set to grow. “We expect made-in-India iPhones to account for 25 per cent to 30 per cent of global iPhone shipments in 2025, up from 18 per cent in 2024,” said Prachir Singh, senior analyst at Counterpoint Research.
Foxconn, Apple’s primary manufacturing partner in India, has already exported $4.4 billion worth of iPhones to the U.S. in the first five months of this year—exceeding the total exports for all of 2024, which stood at $3.7 billion.
To accelerate exports, Apple reportedly chartered aircraft in March to fly shipments of iPhone 13, 14, 16 and 16e models valued at approximately $2 billion directly to the U.S. The company has also lobbied Indian authorities to reduce customs clearance times at Chennai airport—from 30 hours to just six—highlighting its urgency to streamline logistics.
Tata Electronics, a newer iPhone assembler under India’s Tata Group, has also increasingly aligned its output for the U.S. market. Between March and April 2025, about 86 per cent of its iPhone shipments went stateside, up from an average of 52 per cent in 2024. Tata began iPhone exports only in July last year and has not commented on the latest data.
Apple has historically sold over 60 million iPhones annually in the U.S., with roughly four out of five units made in China.
(With inputs from Reuters)
