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In a dramatic shift reflecting broader geopolitical and trade dynamics, Apple has significantly reoriented its export strategy from India, with nearly all iPhones assembled by Foxconn being shipped to the United States between March and May this year.

According to a report by Reuters, customs data showed that 97 per cent of the iPhones exported from Foxconn’s Indian facilities during this three-month period were destined for the US — a considerable rise from the 2024 average of just over 50 per cent.

Previously, iPhones manufactured in India were distributed to several markets, including the Netherlands, Britain, and the Czech Republic. However, this latest data highlights a clear pivot by Apple to avoid the impact of steep tariffs imposed by Washington on goods from China.

Between March and May, Foxconn exported iPhones worth $3.2 billion, with US-bound shipments peaking at $1.3 billion in March and reaching nearly $1 billion in May 2025 — the second-highest on record.

Tariff Tensions Drive Strategic Shifts

The surge in shipments coincides with renewed pressure from US President Donald Trump, who recently declared plans to impose 55 per cent tariffs on Chinese goods, pending approval from both countries’ leaders. Apple, which still relies on China for the majority of its global iPhone production, has been seeking alternative routes to supply its largest market — the US — without incurring heavy duties.

In a bid to streamline this supply chain, the tech giant has even used chartered flights to ship iPhone 13, 14, 16, and 16e models worth approximately $2 billion from India to the US in March. Additionally, Apple has been lobbying for faster customs clearance at Chennai airport — a crucial export point — aiming to reduce processing times from 30 hours to just six, the report noted.

India’s Role Grows Despite Cost Hurdles

With India now central to Apple’s diversification strategy, analysts expect the country to account for a growing share of global iPhone production. “We expect made-in-India iPhones to account for 25 per cent to 30 per cent of global iPhone shipments in 2025, as compared to 18 per cent in 2024,” said Prachir Singh, senior analyst at Counterpoint Research.

Foxconn has already shipped $4.4 billion worth of iPhones to the US from India in the first five months of 2025, surpassing its total of $3.7 billion in 2024. Meanwhile, Tata Electronics, a relatively newer player in Apple’s supply chain, has also been redirecting the majority of its output to the US, with customs data showing 86 per cent of its shipments went there during March and April. This marked a sharp increase from 2024, when only 52 per cent of its exports were US-bound.

Despite this momentum, India’s ambition to become a global manufacturing hub still faces challenges. The cost of producing smartphones locally remains high due to elevated duties on imported components. Yet, Prime Minister Narendra Modi continues to champion India as a competitive manufacturing base in the global tech ecosystem.

Trump, meanwhile, has been vocal about his disapproval of Apple’s offshore production plans. In a pointed remark directed at Apple CEO Tim Cook, he said, “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.”