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Highlights India now supplies over 70% of U.S.-bound iPhones, surpassing China as the top exporter. Despite President Trump’s 25% tariff on Indian imports, analysts are expecting minimal impact on the iPhone supply chain continuity. Apple’s strategy aims to diversify manufacturing amid rising U.S.-China tensions. Experts say the recent US tariffs on India will have minimal impact on iPhone production in India. (Image credit - Apple) Apple has significantly ramped up its iPhone production in India in recent years. The majority of U.S.-bound iPhones are now manufactured in the South Asian country. While this has been a strategic shift, President Donald Trump’s recent decision to impose a 25% tariff on Indian imports raises concern. Industry experts, however, say the tariff will have a limited impact on Apple’s broader manufacturing plans. Despite the tariffs, nearly all of the $3.2 billion worth of iPhones exported by Foxconn from India between March and May were shipped directly to the United States. Analysts and industry executives maintain that Apple is committed to India as a key manufacturing base, even if the result is higher costs for U.S. consumers. An industry executive familiar with Apple’s strategy remarked that it’s “too early to say” whether the latest developments or possible changes in Trump’s stance will lead to a shift in Apple's India manufacturing strategy, adding that “these plans are made with a longer window.” Trump’s tariff announcement this week has sparked concern among Indian businesses, though many see the move as part of a broader negotiation strategy. For Apple, India has become central to its goal of diversifying manufacturing operations beyond China, especially as political tensions with Beijing escalate. According to Counterpoint Research, India supplied 71% of all iPhones sold in the U.S. between April and June, up sharply from 31% during the same period last year, driven by a simultaneous decline in Chinese exports. Despite the new tariffs, India remains a cost-effective manufacturing destination for Apple. Analysts highlight that local component sourcing, government incentives, and labour costs nearly half of China have helped India close the cost gap significantly over the past eight years. “Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved. It is expected to be business as usual, especially with a resilient supply chain like Apple,” said Tarun Pathak, research director at Counterpoint. Bloomberg too reports that India has already overtaken China to become the leading supplier of iPhones to the U.S. market. The report says, “India currently accounts for more than a fifth of global iPhone production and has already surpassed China to become the top supplier of the device to the US market.” Apple’s long-term vision is gradually materialising. Although the bulk of iPhones are still assembled in China, India has become Apple’s second-largest manufacturing hub. The company reportedly aims to shift 50% of global iPhone production to India within the next few years. A major milestone would be synchronising iPhone production launches in both India and China. Apple had initially planned to start iPhone 16 production simultaneously in both countries but fell short, with India’s assembly beginning a few weeks later. However, the company is expected to meet this goal with the iPhone 17. FAQs Q1. Why is Apple increasing iPhone production in India? Answer. Apple is ramping up production in India to diversify its supply chain away from China amid rising geopolitical tensions. India offers cost advantages like lower labour costs, local component sourcing, and government incentives, making it a strategic manufacturing hub. Q2. Will the 25% U.S. tariff on Indian imports affect Apple’s manufacturing plans? Answer. Industry experts believe the tariff will have a limited impact on Apple’s broader strategy. Apple remains committed to India as a key supplier, even if it results in higher costs for U.S. consumers. The company’s plans are made with a long-term perspective. Q3. Has India overtaken China as the top iPhone supplier to the U.S.? Answer. Yes. According to Bloomberg and Counterpoint Research, India now accounts for over 71% of iPhones sold in the U.S. between April and June, surpassing China and becoming the leading supplier to the American market. Related Links - https://www.mymobileindia.com/apple-expands-iphone-production-in-india-with-new-tata-and-foxconn-plants/ https://www.mymobileindia.com/apple-iphone-production-india-2028/

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