Apple's Strategic Shift: Exporting Indian-Made iPhones to the U.S.

In a strategic pivot to navigate hefty U.S. tariffs, nearly all Foxconn-manufactured iPhones in India between March and May were dispatched to the United States, according to exclusive data obtained by Reuters. This marks a significant departure from the usual distribution pattern, wherein exports were more widely dispersed across Europe.

Customs data reveal that during this period, Foxconn exported iPhones worth $3.2 billion from India, with an astounding 97% destined for the U.S., far exceeding the 2024 average of 50.3%. In May 2025, alone, shipments to the U.S. reached almost $1 billion, trailing only March's record.

President Donald Trump announced a 55% tariff on Chinese goods amidst easing negotiations. Meanwhile, India grapples with a 10% tariff and a potential 26% reciprocal levy. Apple aims to sidestep these costs, enhancing production logistics and advocating for expedited customs procedures at key Indian airports, anticipating a 25-30% contribution of Indian iPhones to global shipments by 2025.

(With inputs from agencies.)