In a significant development reflecting Apple’s evolving global manufacturing strategy, Foxconn, the Taiwanese contract manufacturer responsible for assembling a large portion of iPhones, has shipped 97% of its India-assembled iPhones to the United States. This surge in exports underscores India’s rising prominence in Apple’s supply chain, especially as the company seeks to mitigate the impact of trade tariffs and reduce dependency on Chinese manufacturing.

Trump-Era Tariffs Prompt Manufacturing Shift

The backdrop of this export shift traces back to U.S.-China trade tensions, particularly during Donald Trump’s presidency, when the U.S. imposed steep tariffs on Chinese-made electronics, including smartphones. Apple, heavily reliant on China-based manufacturing for years, faced significant cost pressures. As a response, the tech giant began diversifying its supply chain — and India emerged as a natural alternative.

Foxconn’s Indian Operations Scale Up

Foxconn’s facilities in southern India, particularly in Tamil Nadu, have seen accelerated investment and expansion in recent years. The plant not only serves Apple’s growing domestic market in India but now also plays a critical role in supplying the U.S. market. Government data confirms that nearly all iPhones exported from Foxconn’s India plant in recent months have been destined for the U.S., representing a dramatic pivot in Apple’s export logistics.

India’s Role in Apple’s Global Ambitions

This move aligns with India's “Make in India” initiative, which encourages global tech firms to manufacture locally. Apple’s commitment is clear: beyond Foxconn, partners like Pegatron and Wistron have also ramped up operations in India. Apple is now assembling more than 14% of its total iPhones in India, and that figure is expected to rise.

A Strategic Hedge Against China Risk

Apple’s shift is not merely about tariffs. The company is also navigating increasing geopolitical instability, labor issues, and regulatory scrutiny in China. By establishing a stronger base in India, Apple is not only lowering tariff exposure but also building a hedge against future supply chain disruptions.

Looking Ahead

Analysts suggest that Apple’s India exports could expand even further in the coming years. With Foxconn planning to invest over $1 billion in new Indian facilities, and Apple seeking to deepen ties with Indian suppliers, the subcontinent is poised to become a central pillar of Apple’s long-term manufacturing strategy.