As Apple intensifies its manufacturing push in India, iPhone exports from the country to the United States soared 76% year-on-year in April, signaling a significant shift in the tech giant’s global supply chain strategy.
According to the latest estimates by market research firm Omdia, nearly 3 million iPhones assembled in India were shipped to the US last month. In sharp contrast, iPhone exports from China plunged by 76% to just 900,000 units during the same period.
This is the first time India has consistently outpaced China in supplying iPhones to the American market — a landmark moment, as reported by CNBC, citing Omdia data.
“Apple has been preparing for this kind of trade disruption for years. The April spike likely reflects strategic stockpiling ahead of tariff hikes,” said Le Xuan Chiew, Research Manager at Omdia.
Strategic Stockpiling Ahead of Tariff Uncertainty
The shift comes as the US considers steep import tariffs, with former President Donald Trump threatening a 25% levy on Apple products not made domestically. He also floated a 50% tax on imports from the European Union, escalating fears of a trade war that could significantly impact electronics pricing and availability.
The average quarterly demand for iPhones in the US stands at around 20 million units. If supply from China continues to fall, Apple will increasingly rely on India as a key export base.
Why US Manufacturing Isn’t a Viable Option (Yet)
While domestic manufacturing might seem like a logical response, experts say the cost of producing iPhones in the US would be prohibitive. According to Dan Ives, Global Head of Tech Research at Wedbush Securities, producing a fully “Made in America” iPhone would cost upwards of $3,500 (approx. ₹2.98 lakh) due to the lack of an integrated supply chain.
“The idea of fully domestic iPhone production is a fictional tale,” Ives told CNN, warning that replicating Apple’s intricate Asian supply network in the US would drive up costs and require massive investment.
Market watchers estimate it would take Apple at least three years and over $30 billion just to shift 10% of its supply chain to the US.
India’s Rise in Apple’s Global Supply Chain
India is rapidly emerging as a manufacturing powerhouse for Apple, bolstered by favorable government policies, a growing component ecosystem, and lower labor costs. The tech giant has assured Indian authorities of its long-term commitment to local production, aligning with the government’s ‘Make in India’ initiative.
Apple CEO Tim Cook recently confirmed during the company’s earnings call that “the majority” of iPhones shipped to the US in the June quarter will be made in India, further reinforcing the country’s pivotal role in the brand’s global operations.
