Apple’s India Strategy: Foxconn Ships 97% of iPhones to U.S. Amid Tariff Shift

Foxconn’s export data from India between March and May 2025 underscores a significant strategic pivot by Apple. During this period, 97% of India-produced iPhones—valued at USD 3.2 billion—were shipped to the U.S., a sharp rise from the 50.3% average in 2024 (Reuters, 2025). A near-record USD 1 billion worth of devices shipped in May alone, following a USD 1.3 billion peak in March. Altogether, Foxconn has sent USD 4.4 billion of India‑made iPhones to the U.S. in the first five months of 2025, surpassing the total USD 3.7 billion it shipped in the entirety of 2024 (Reuters, 2025).

This shift coincides with a backdrop of escalating trade tensions: China is facing up to 55% tariffs, while India remains subject to a 10% baseline, with a proposed “reciprocal” levy of 26% currently paused (Reuters, 2025). To expedite supply chain flow, Apple has chartered transport flights carrying approximately USD 2 billion in inventory from India and pushed for expedited customs clearance at Chennai airport—from 30 hours down to six (Reuters, 2025). Tata Electronics, Apple’s other Indian supplier, has also realigned its production, shipping an average of 86% of its exports to the U.S. during March–April (Reuters, 2025).

Analysts at Counterpoint Research project that India-made iPhones will represent 25–30% of global shipments in 2025, up from 18% in 2024 (Reuters, 2025). Meanwhile, India’s annual iPhone export market hit USD 12.8 billion in 2024—a 42% year-on-year increase—with Tamil Nadu emerging as the production hub accounting for approximately 70–80% of output (Times of India, 2025). Although production costs in India remain 5–10% higher than in China, the tariff advantage and diversifying supply chains have made India a core “China‑plus‑one” manufacturing base (Reuters, 2025; Financial Times, 2025).

Apple’s strategic realignment reflects an agile response to global trade dynamics. By shifting production to India, Apple not only reduces tariff exposure but also strengthens its global supply chain resilience. With Foxconn investing USD 1.5 billion in manufacturing capacity near Chennai and further development underway in Karnataka, India is increasingly positioned as a central hub for iPhone production (Financial Times, 2025; Reuters, 2025).