President Trump threatened higher tariffs if iPhones aren’t made in the U.S.Shipments of iPhones from India to the U.S. increased by 76% in April compared to last year, reaching about 3 million units, according to technology analyst firm Omdia. Meanwhile, shipments from China fell sharply by 76% to just 900,000 units in the same period. This shift reflects Apple’s push to expand its “made in India” production.
Reasons Behind the Shift
Apple has been diversifying its supply chain to reduce reliance on China amid trade tensions and tariffs imposed by the U.S. government. The company started investing heavily in India during the COVID-19 pandemic to prepare for disruptions in China. India’s iPhone shipments to the U.S. also surpassed China’s in March, likely boosted by stockpiling before tariffs took effect in early April.
Impact of U.S. Tariffs
Although the Trump administration excluded iPhones and some electronics from new reciprocal tariffs, iPhones imported from China still face higher tariffs—30% compared to 10% for India and other countries. This gives Apple a financial incentive to increase production in India.
Future Growth and Limitations
While India’s shipment growth has been impressive, experts say the manufacturing capacity in India is still not sufficient to meet full U.S. demand, estimated at about 20 million iPhones per quarter. India is expected to reach this capacity only by 2026. Much of the supply chain, including sub-assembly work, remains concentrated in China.
Political and Trade Challenges
Apple’s expansion in India faces potential hurdles from both U.S. and Chinese governments. President Trump has criticized Apple’s move and threatened higher tariffs if iPhones are not produced domestically in the U.S. China has reportedly made it difficult for India to access key technology and talent necessary to support Apple’s suppliers.
Industry Expert Views
Analysts say Apple’s strategy to move assembly to India is smart but risky, given political pressures. Despite logistical and supply chain challenges in India, experts believe Apple will continue to prioritize India over moving production back to the U.S. The notion of producing iPhones fully in the U.S. is considered unrealistic by industry watchers.
Apple’s growing “made in India” initiative is reshaping its supply chain amid global trade conflicts. Although challenges remain, India is becoming a crucial hub for iPhone production, helping Apple navigate tariffs and political pressures from both Washington and Beijing.
