Apple's Strategic Shift to India

In a bold move to preempt higher tariffs on imports from China, Apple has significantly increased its iPhone exports from India to the US, accounting for 97.6% of total iPhone exports in March 2025. This marks a substantial rise from 81.9% in the previous December-February period.

The three iPhone manufacturers in India are Tata Electronics, Pegatron and Foxconn Hon Hai.

Surge in Exports Amid Tariff Uncertainties

According to an S&P Global Market Intelligence report, there was a 219% surge in iPhone exports during March. This expansion in Indian production facilities comes as Donald Trump announces looming tariffs and trade uncertainties.

Global Trade Dynamics

The Trump administration has implemented a 10% baseline tariff on imports, with additional reciprocal tariffs for countries like China and Vietnam. Despite China's retaliatory measures, consumer electronics have been exempted, with specific tariffs expected to be announced in May.

Apple's Long-term Strategy

Apple plans to completely shift its iPhone production for the US market from China to India by 2026. This move, supported by India's production-linked incentive schemes, signifies Apple's confidence in South Asia as a manufacturing hub.

Challenges and Opportunities

While the shift requires substantial investment and faces potential obstacles like workforce strikes, it positions India strongly in global supply networks. The US market's demand far exceeds India's current export capacity, highlighting the need for expanded production.

Future Prospects

With new manufacturing units like Tata Electronics in Hosur and Foxconn's $2.6 billion investment in Bengaluru, Apple is set to significantly enhance its export capabilities from India.