By iPhone Production in India Surges as Apple Exports 2.9 Million Units to U.S. in April 2025
iPhone production in India is witnessing unprecedented growth as Apple intensifies its manufacturing operations outside China. According to market research firm Omdia, Apple shipped a remarkable 2.9 million iPhones from India to the United States in April 2025—a staggering 76% increase compared to the same month last year. This development highlights Apple’s strategic shift in its supply chain, prompted by escalating U.S.-China trade tensions and rising tariffs.
Market analyst Counterpoint Research supports these figures, estimating India’s iPhone exports to the U.S. at 2.9 to 3 million units in April, with similar numbers anticipated for May. The milestone further signals Apple’s long-term commitment to diversifying production away from China while strengthening India’s role as a global manufacturing hub.
iPhone Production in India Gains Momentum Amid U.S.-China Trade Tensions
This surge in exports comes in the wake of a critical U.S. policy shift. On April 2, 2025, the United States implemented aggressive retaliatory tariffs targeting countries with significant trade surpluses, hitting Chinese exports the hardest. Consequently, Apple has accelerated production in India to bypass these penalties and ensure consistent product availability in its largest market—the U.S.
In stark contrast, iPhone exports from China to the U.S. saw a dramatic 76% decline year-over-year in April 2025, dropping from 3.7 million units to just 900,000, according to Omdia. While April’s India export numbers slightly dipped from March due to typical seasonal slowdowns ahead of Apple’s September launch cycle, the broader trend remains upward.
Trump’s 25% Tariff Threat Challenges Apple’s iPhone Strategy in India
Former President Donald Trump has reignited his “America First” policy agenda, warning of potential 25% tariffs on iPhones not manufactured within the U.S. In a post on Truth Social, Trump asserted, “I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the United States to be made in the United States, not India or anyplace else.”
This renewed pressure places Apple in a challenging position. Leading Apple analyst Ming-Chi Kuo of TF Securities warns that relocating iPhone assembly to the U.S. could drastically inflate retail prices. Kuo estimates a U.S.-assembled iPhone Pro could exceed $3,000—nearly triple its current price—due to higher labor and logistics costs.
“From a profitability standpoint, it’s more viable for Apple to absorb the 25% tariff than to shift production to the U.S.,” said Kuo.
India Becomes Central to Apple’s Global Manufacturing Strategy
Despite these challenges, iPhone production in India continues to grow rapidly. In Q1 2025, India accounted for 21% of global iPhone shipments, with projections indicating it could rise to 25–26% by the end of the year, according to Omdia.
Apple has already begun manufacturing premium models like the iPhone Pro and Pro Max in India, with workforce training largely completed. However, scaling remains difficult due to India’s developing infrastructure and the complexity of Apple’s global supply chain, which still heavily depends on more than 200 Chinese suppliers.
“China remains deeply integrated into Apple’s ecosystem,” said Sanyam Chaurasia, an analyst at Canalys (part of Omdia). “Shifting production entirely to the U.S. would disrupt a highly intricate supply chain network.”
Government Incentives and Foxconn Expansion Fuel iPhone Production in India
India’s success in attracting Apple’s manufacturing is largely due to the government’s Production Linked Incentive (PLI) scheme, which offers financial benefits to companies increasing domestic output. Apple’s key suppliers—Foxconn and Pegatron—have made substantial investments in Indian operations as a result.
In May 2025, Foxconn expanded its Tamil Nadu facility, creating an estimated 10,000 new jobs to support Apple’s growing production requirements. Apple’s strategy mirrors broader industry movements, with tech giants like Samsung and Google also ramping up production in India to reduce dependency on China amid volatile geopolitical conditions.
Can India Keep Up with Apple’s Global Demand?
With new iPhone models expected in September 2025, all eyes are on iPhone production in India and whether it can meet growing demand while navigating the complex landscape of U.S. trade policy. The stakes are high—for both Apple’s market dominance and consumer wallet share.
Whether Apple can continue offering competitive pricing or is forced to pass on higher production costs will depend on how well it scales Indian manufacturing and withstands political pressure from Washington.
