Between March and May 2025, Foxconn exported an impressive 97% of its iPhones from India to the United States, a substantial increase from the 50% average in 2024.

This strategic shift is part of Apple's broader diversification efforts aimed at mitigating risks associated with US trade penalties by moving key production out of China.

As part of these efforts, Apple is ramping up production in India, with projections indicating that made-in-India iPhones could represent 25% to 30% of global shipments in 2025, up from 18% in 2024.

This transition is largely a response to escalating US tariffs on Chinese imports, with former President Donald Trump threatening tariffs as high as 55% on Chinese goods.

Such shifts in supply chains are expected to influence tech product prices and availability, prompting investors to reevaluate risks and opportunities in the sector.

Prime Minister Narendra Modi's administration is actively promoting India as a smartphone manufacturing hub, although high import duties on components remain a challenge.

The Biden administration's increasing tariffs on Chinese products have further incentivized Apple to boost its investment in India, as new tariffs could reach similar heights.

These changes underscore the growing impact of geopolitical factors on corporate strategies and international trade dynamics.

In contrast to the US's tariff landscape, India currently imposes a 10% tariff and is negotiating to avoid an additional 26% levy that was recently announced but temporarily suspended.

India is emerging as a significant manufacturing hub for tech companies, marking a new chapter in global trade dynamics.

Despite Trump's criticism of Apple's strategy favoring India over the US, Apple appears committed to expanding its operations in India.

To facilitate this increased export volume, Apple has chartered aircraft for expedited shipments of iPhones valued at approximately $2 billion to the US and is lobbying for faster customs clearance at Chennai airport.