India overtakes China in iPhone exports to the US

If you use an iPhone or plan to get one soon, you should know where it comes from. Until recently, the answer was almost always: China. But that's changing. Apple is shifting its production – and India is taking on a larger role. The reason is primarily geopolitical tensions and economic pressure.

Apple is restructuring its supply chains. The company is responding to trade conflicts, rising tariffs, and the need to reduce dependence. In recent months, India has become increasingly important for Apple. iPhone production there is increasing sharply – so much so that more iPhones are now being shipped to the US from India than from China. This is a clear shift in strategy.

India exports more iPhones to the US than China

In April 2025, Apple exported more iPhones to the US from India than from China for the second consecutive year . According to market research firm Canalys, shipments from India increased by 76 percent year-on-year, to around three million devices. At the same time, exports from China plummeted by 76 percent, to approximately 900,000 units, during the same period. This export milestone demonstrates that Apple is re-prioritizing its production. Even though this is a phase outside of the peak season for Pro models, the trend is clear: India is gaining importance.

Why Apple produces in India

Apple has been pursuing the goal of becoming less dependent on China for several years. The first steps in this direction were taken during the coronavirus pandemic. At that time, Apple began slowly expanding production in India. But with the introduction of new US tariffs on Chinese products in April 2025, the pressure increased. Apple has responded by accelerating exports from India. A special logistics program is also helping: iPhones from India are delivered to the US particularly quickly and efficiently via so-called "Green Corridors." These fast-track export routes enable speedy customs clearance. Analysts believe that Apple was already storing iPhones in the US in March 2025, before the new tariffs came into effect.

iPhone production remains complex

Despite increasing exports from India, one thing is clear: most of the components for the iPhone continue to come from China. Final assembly – the last step in the production process – currently takes place primarily in India. Daniel Newman, CEO of the Futurum Group, says that while this step is important , it is only a small part of the overall supply chain. Many sub-assemblies, i.e. the crucial components, will continue to be manufactured in China. Production capacity in India is also still limited. Demand for iPhones in the US averages 20 million units per quarter. Experts like the analysts at Omdia do not expect India to be able to supply this quantity before 2026.

Politics and costs as obstacles

In addition to the logistical challenges, Apple also has to deal with political tensions. In early May 2025, President Trump announced that he would impose a 25 percent tariff on iPhones from India. On social media, he stated that iPhones should be produced in the USA – not in India or other countries. China has also taken countermeasures. The government in Beijing is now making it more difficult to export high-tech machinery and skilled workers, which are important for Apple's suppliers in India. In this way, China wants to maintain control over key areas of iPhone production. In addition, manufacturing in India is more expensive. In April 2025, production costs were around 5 to 8 percent higher than in China. Apple is trying to offset these additional costs through tax incentives and optimized transport routes. The "Green Corridor" is just one example.

Apple stays on course – despite headwinds

Despite all the hurdles, industry observers say Apple is unlikely to change its strategy. Analyst Dan Ives of Wedbush Securities called the idea of shifting iPhone production entirely to the US a "fairytale." Even as political pressure increases, Apple will continue to invest in India. For Ives, one thing is clear: India remains the central building block in Apple's global planning. Tim Cook will try to negotiate politically—but the location in India is certain.

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India becomes the new iPhone center

India is playing an increasingly large role in iPhone production. For you as a user, this means your next iPhone could very well come from India. Even though many components still come from China, Apple is deliberately relocating final assembly. This change is based on economic, political, and strategic reasons – and it will continue. Apple is committed to India, even if the path to it isn't entirely easy. (Image: Shutterstock / Wongsakorn 2468)