India has achieved a significant milestone in global electronics manufacturing by surpassing China as the largest exporter of iPhones to the United States, according to a report by market research firm Omdia. In April 2025, nearly three million iPhones manufactured in India were shipped to the US, marking a 76% year-on-year increase.

In stark contrast, iPhone shipments from China to the US plummeted by 76% to just 900,000 units during the same period. This dramatic shift in Apple’s supply chain is attributed to a combination of strategic planning by the company and heightened geopolitical tensions, particularly new and steep tariffs imposed on Chinese imports by the Trump administration.

The backdrop to this development is a series of trade disruptions and policy changes. US President Donald Trump has repeatedly warned Apple to move iPhone manufacturing to the United States, threatening to impose a 25% tariff on imported iPhones if they are not made domestically.

Despite this pressure, Apple has continued to expand its production footprint in India, leveraging the country’s growing manufacturing ecosystem and favourable tariff environment. Currently, Chinese-made iPhones face a 30% import duty in the US, while those assembled in India are subject to a lower 10% tariff, making India a more attractive export hub for Apple.

Apple’s transition to India as a manufacturing base is the result of years of preparation. The company began investing significantly in Indian supply chains during the COVID-19 pandemic, anticipating the kind of trade disruptions now unfolding. Analysts suggest that the surge in shipments from India in April was partly due to strategic stockpiling ahead of anticipated tariff hikes. Le Xuan Chiew, research manager at Omdia, noted that Apple has been preparing for such disruptions for years, and the April spike reflects these proactive measures.

India’s rise as a key hub in Apple’s global supply chain is underscored by the expansion of production facilities in the country. Taiwanese contract manufacturer Foxconn operates a major factory in Tamil Nadu, while Tata Electronics, which manages Pegatron’s operations in India, is also ramping up production. Both Tata and Foxconn are building new plants and adding capacity to meet the growing demand for India-made iPhones. This expansion is expected to generate significant employment and boost India’s economy.

Despite these advances, experts caution that India’s current manufacturing capacity is not yet sufficient to meet the full demand for iPhones in the US, which stands at about 20 million units per quarter. Omdia estimates that India may only be able to match this level of output by 2026. Meanwhile, Apple CEO Tim Cook has reaffirmed the company’s commitment to sourcing the majority of iPhones sold in the US from India, while China continues to produce the vast majority of devices for other global markets.

The push for domestic production in the US faces significant challenges. Industry analysts, including Dan Ives of Wedbush Securities, describe the idea of fully domestic iPhone production as a “fictional tale,” citing the enormous cost and complexity of replicating Apple’s Asian supply chain in the US. 

Market watchers estimate that it would take Apple at least three years and a $30 billion investment to move just 10% of its supply chain to the US. The structural barriers include a shortage of skilled labour and the lack of a fully integrated electronics manufacturing ecosystem in the US.

India’s emergence as the largest iPhone exporter to the US reflects a major realignment in Apple’s global supply chain, driven by trade tensions, tariff policies, and strategic investments in Indian manufacturing.

While India is rapidly expanding its production capacity and is poised to play an even larger role in the future, the transition is complex and will take time to fully meet US demand. Meanwhile, the push for domestic US manufacturing remains fraught with challenges, underscoring the enduring importance of global supply chains in the tech industry.

Agencies