Apple's India-made iPhones overwhelmingly head to US, bypassing China.

In a striking demonstration of shifting global supply chains, an overwhelming 97% of iPhones assembled in India by manufacturing giant Foxconn were exported to the United States between March and May of this year. This remarkable pivot, detailed in recent customs data, saw Foxconn ship iPhones worth $3.2 billion from India during that three-month period, with nearly all of them destined for American consumers.[1][2][3][4] The figures represent a dramatic realignment of Apple's export strategy, which previously saw a more diversified distribution to countries in Europe.[1][3][4] This strategic redirection underscores India's rapidly growing importance as a critical manufacturing hub for the tech behemoth, a move driven by a confluence of geopolitical tensions, economic incentives, and a desire to de-risk its historically China-centric production model.

The surge in India-to-US iPhone shipments is a clear manifestation of Apple's "China Plus One" strategy, a long-term plan to diversify its manufacturing base and reduce its heavy reliance on China.[5][6][7] This strategy has been accelerated by persistent trade frictions between the US and China, which have introduced significant tariff risks and operational uncertainties for multinational corporations.[5][8][9] By shifting a substantial portion of its US-bound iPhone production to India, Apple aims to bypass steep American tariffs on Chinese goods.[1][10][2] The numbers tell a compelling story of this transition: in 2024, an average of 50.3% of Foxconn's Indian-made iPhones were sent to the US, a figure that has now skyrocketed to 97%.[1][4] The total value of these exports in the first five months of the current year, $4.4 billion, has already eclipsed the $3.7 billion total for the entirety of 2024.[2] This strategic shift is not limited to Foxconn; another Apple supplier, Tata Electronics, also directed a significant majority—nearly 86%—of its iPhone exports to the US during March and April.[1]

Powering this manufacturing exodus from China is a robust framework of Indian government support, most notably the Production-Linked Incentive (PLI) scheme.[11][12][13][14] Introduced in 2020, the PLI scheme offers financial incentives to companies, both foreign and domestic, on incremental sales of goods manufactured within India, effectively boosting local production and exports.[12][7][13][14] For the electronics sector, this translates to incentives of 4-6% on increased sales, a compelling proposition for large-scale manufacturers like Apple's partners.[12][13] This policy has been instrumental in attracting massive investments and fostering a more favorable manufacturing ecosystem.[7][14] As a result, Apple's production in India has soared, with the value of iPhones assembled in the country reaching $22 billion in the fiscal year ending in March, a 60% increase from the previous year.[15][16][17][18] This output now accounts for one in five, or 20%, of all iPhones made globally.[19][18]

The implications of this manufacturing realignment are profound, both for India and the global technology landscape. For India, it signals a major victory in its "Make in India" initiative, transforming the nation from a net importer of mobile phones into a significant exporter.[20][14] The influx of investment from Apple and its suppliers like Foxconn and the Tata Group is creating tens of thousands of jobs and catalyzing the development of a sophisticated local supply chain.[11][21] This success has propelled electronics into a leading export category for the country, even surpassing its renowned pharmaceutical sector.[15][16] For the global supply chain, Apple's move is a bellwether, highlighting a broader trend among multinational corporations to build more resilient and geographically distributed production networks.[22][23][24] This diversification mitigates risks associated with over-concentration in a single country and adapts to a shifting geopolitical map.[8][22][24] The hardware that underpins the burgeoning AI industry is built on this global manufacturing foundation, and as production diversifies, it could influence component sourcing, cost dynamics, and the overall resilience of the technology ecosystem that fuels AI development and deployment.[22][23]

In conclusion, the dramatic increase in US-bound iPhone exports from India marks a pivotal moment in Apple's global strategy and a significant milestone for India's manufacturing ambitions. Driven by a desire to circumvent US-China trade tariffs and bolstered by Indian government incentives, this shift is rapidly turning India into a primary hub for iPhone production.[1][13] While challenges in scaling infrastructure and navigating complex geopolitics remain, the trend is clear: the global electronics supply chain is being redrawn, with India playing an increasingly central role. This evolving landscape not only reshapes how the world's most popular consumer electronics are made but also fortifies the hardware supply chains essential for the future of artificial intelligence and the broader technology sector.