Foxconn Reports Majority of Indian iPhones Heading to the US Market
Foxconn, the manufacturer for Apple, has seen a remarkable shift in its iPhone exports to the United States, rising from 50% of its Indian production to an astonishing 97%. This change is part of Apple’s strategy to lessen the impact of tariffs imposed during Trump’s administration.
In May 2025, Foxconn’s exports of iPhones from India had already doubled, despite Trump’s insistence that Tim Cook cease operations in India. However, manufacturing iPhones in the US remains unfeasible due to a lack of skilled labor and facilities.
The tariffs imposed by Trump have fluctuated, but he has ultimately charged less for imports from India compared to those from China. Apple has consequently adjusted its supply chain to reduce the impact of these tariffs.
Recent reports indicate that between March and May 2025, 97% of Foxconn’s iPhones made in India were directed toward the US market. While specific production numbers weren’t disclosed, Foxconn’s shipments to the US were valued at $3.7 billion for the entirety of 2024 and have surged to an estimated $4.4 billion for just the first five months of 2025.
Notably, March 2025 alone saw record shipments worth $1.3 billion, but this figure decreased to just under $1 billion in May. The remaining 3% of production likely catered to domestic resellers in India.
Although Apple is expanding its production in India, it is unlikely to relocate iPhone manufacturing to the US as there simply aren’t the necessary resources. Looking ahead, Apple plans to continue expanding its operations in India.
During a recent earnings call, Tim Cook predicted $900 million in tariff expenses for the quarter ending June 2025, assuming no further changes. However, subsequent tariff announcements suggest that future increases are almost certain.
The volatility of the current administration also raises concerns about the likelihood of additional tariffs, particularly in light of an ongoing national security investigation that may lead to new levies.