Apple Speeds Up iPhone Exodus to New Tech Haven

As the trade war between Washington and Beijing escalates, Apple is significantly shifting its production strategy, with India becoming a central part of its contingency plan.

$22 Billion of ‘Made in India’ iPhones

According to the Straits Times, one in five iPhones is now manufactured in India, accounting for 20% of the global production. In the twelve months leading up to March 2025, iPhones worth $22 billion were produced in India, marking a 60% increase from the previous year. This impressive figure, cited by an official from the Indian Ministry of Technology, remains somewhat vague. For instance, it’s unclear whether these iPhones are solely for export or if they also include those sold within the domestic market.

Previous estimates had suggested that 30 to 40 million units were produced annually in India, with 12 million destined for the local market. The remainder is shipped to key markets such as the United States and Europe, particularly since the introduction of new customs tariffs by Donald Trump.

A Response to Sino-American Tensions

Even before Donald Trump’s initial announcements on tariffs, Apple had already begun reducing its dependency on China. However, the recent tariff measures have decidedly accelerated this shift. Manufacturing in India allows Apple to partially circumvent these new taxes, whose amounts are frequently changing (escalating up to 125%).

With the expansion of Foxconn in the country—which plans to double its capacity by the end of 2025—the momentum appears well underway. Apple has been aiming for 25% of its iPhone production in India for several years, a target that may be reached sooner than anticipated if tax pressures continue to increase.

An Increasingly Indian iPhone

This strategic pivot is also part of a broader drive for industrial diversification. India, with its tax incentives, skilled workforce, and political will to attract tech giants, is increasingly becoming a key player in electronic manufacturing.

Apple is not new to this tactic: beyond the iPhone, the company already assembles products like AirPods and certain iPad models on the subcontinent. In the future, the production of accessories, MacBooks, or even components might also shift to this route. To mitigate any disruptions, the company has ramped up air shipments from India, even chartering several cargo planes to deliver 600 tons of iPhones urgently before the tariff deadline.

A Transition Still in Progress

However, it’s important to note that the transition is not yet complete. While India’s role is growing, China remains crucial in Apple’s supply chain, particularly for the most sensitive components or large-scale assemblies. The upgrading of India’s industrial sector will take time, even though the signs are increasingly clear.

In the meantime, Tim Cook continues to place significant bets on India, both for its production capabilities and its growth potential. This dual-focus strategy is essential to navigate the geopolitical turbulence and the increasingly unpredictable tariff demands set by Donald Trump.