In an impressive maneuver, Foxconn has shifted nearly all its iPhone exports from India to the United States, as revealed by customs data covering the period from March to May. This move reflects Apple’s strategic efforts to circumvent high tariffs imposed on products originating from China.
The statistics, reported by Reuters, indicate that a staggering 97% of iPhones sent overseas during this timeframe were directed to the US. This is a marked increase from the average of 50% in 2024, highlighting a significant realignment of Apple’s export strategies.
Between March and May, Foxconn exported iPhones valued at $3.2 billion, with nearly all of that sum earmarked for American consumers. Notably, iPhone shipments to the US reached a peak of nearly $1 billion in May, marking the second-highest value recorded for Foxconn, only eclipsed by March’s $1.3 billion worth of devices.
Despite reaching out to Foxconn and Apple for comments, no responses have been forthcoming. As the trade landscape becomes increasingly complex, US President Donald Trump recently announced a staggering 55% tariff on China, following an agreement that aims to ease previously astronomical levies.
India, like many US trading partners, faces a standard 10% tariff, while ongoing negotiations are attempting to avert a looming 26% reciprocal levy proposed by Trump.
Apple’s push for greater production within India has elicited some criticism from Trump, who expressed his desire for the tech giant to focus on US manufacturing. As he noted in a recent comment, Apple should prioritize building in the United States over supporting Indian production.
So far this year, Foxconn’s overall iPhone exports to the US from India have totaled $4.4 billion, significantly higher than the $3.7 billion exported during the entirety of 2024.
To expedite production and decrease costs associated with tariffs, Apple has taken various measures, including chartering planes to deliver iPhone models valued at approximately $2 billion directly to the US. Additionally, Apple has urged Indian airport authorities to streamline customs processes at Chennai airport, reducing clearance time from 30 to just six hours to facilitate quicker exports.
Analysts at Counterpoint Research anticipate that by 2025, iPhones produced in India could make up 25% to 30% of all global shipments, up from 18% in 2024.
Tata Electronics, another Apple supplier, has also been focused on exporting iPhones, shipping 86% of its production to the US in March and April, although they did not provide figures for May. The company began its export journey in July 2024, previously sending only 52% of its shipments to the US.
Despite Indian Prime Minister Narendra Modi’s encouragement for India to become a major smartphone manufacturing hub, the ongoing high import duties on mobile phone components make it a costly endeavor to produce devices on the subcontinent. Historically, Apple has sold over 60 million iPhones annually in the US, with about 80% of those manufactured in China.