According to a survey by market research firm Omdia, India has surpassed China as the biggest supplier of iPhones to the United States, marking an important milestone in the global electronics manufacturing industry. Nearly three million iPhones made in India were transported to the US in April 2025, a 76% increase from the previous year.
On the other hand, over the same time period, iPhone shipments to the US from China fell by 76% to just 900,000 devices. A combination of Apple’s strategic planning and increased geopolitical tensions—specifically, the Trump administration’s new and high tariffs on Chinese imports—are to blame for this significant change in the company’s supply chain.
A number of trade interruptions and policy changes have occurred in the context of this development. US President Donald Trump has threatened to levy a 25% tariff on imported iPhones if they are not built in the US, and he has repeatedly challenged Apple to relocate iPhone manufacturing to the US.
Apple has persisted in developing its manufacturing presence in India in spite of this pressure by taking advantage of the nation’s expanding manufacturing sector and advantageous tariff environment. Currently, iPhones produced in India are subject to a lower 10% tariff than those made in China, which makes India a more desirable export destination for Apple.
After years of planning, Apple decided to move its production operations to India. Anticipating the type of trade interruptions currently occurring, the business made large investments in Indian supply systems during the COVID-19 pandemic. According to analysts, strategic hoarding ahead of expected tariff hikes may have contributed to the April spike in imports from India. According to Le Xuan Chiew, research manager at Omdia, Apple has been taking proactive steps to prepare for these disruptions for years, and the April rise is a reflection of those efforts.
The growth of Apple’s production facilities in India highlights the country’s status as a major supply chain center. While Tata Electronics, which oversees Pegatron’s operations in India, is also increasing manufacturing, Taiwanese contract manufacturer Foxconn runs a sizable factory in Tamil Nadu. To keep up with the increasing demand for iPhones built in India, Tata and Foxconn are both expanding their facilities and increasing their capacity. It is anticipated that this expansion will strengthen India’s economy and create a large number of jobs.
Notwithstanding these developments, analysts warn that India’s present production capacity is insufficient to fulfill the US market’s whole iPhone demand, which is approximately 20 million devices every quarter. According to Omdia, India might not be able to produce at this level until 2026. While China still produces the great majority of iPhones for other international markets, Apple CEO Tim Cook has reiterated the company’s commitment to sourcing the bulk of iPhones sold in the US from India.
There are many obstacles in the way of the US’s drive for local production. The concept of producing iPhones entirely domestically is referred to as a “fictional tale” by industry analysts, such as Dan Ives of Wedbush Securities, who points out the high expense and difficulty of duplicating Apple’s Asian supply chain in the US.
According to market observers, Apple would need to invest $30 billion and wait at least three years to shift just 10% of its supply chain to the US. The absence of a fully integrated electronics manufacturing ecosystem in the United States and a scarcity of competent labor are examples of structural impediments.
Due to trade tensions, tariffs, and strategic investments in Indian manufacturing, India has become the top iPhone exporter to the US, reflecting a significant realignment in Apple’s worldwide supply chain.
Even while India is prepared to play an even bigger role in the future and is rapidly increasing its production capacity, the shift is complicated and will take time to fully meet US demand. The drive for local US manufacturing is still difficult, though, which emphasizes how crucial global supply chains are to the tech sector.
