Foxconn Exports 97% of India-Made iPhones to U.S. to Avert China Tariffs

Apple’s (AAPL) largest supplier Foxconn has ramped up exports of India-made iPhones to the U.S. to avoid the hefty tariffs on Chinese goods. According to a Reuters report citing official customs data, an average of 97% of iPhones produced in India were shipped to the U.S. between March and May. The data shows a stark jump in exports of Indian iPhones compared to the 50% monthly average recorded in 2024. India faces a baseline 10% tariff, while Trump has proposed a revised 55% tariff on Chinese imports following the U.S.-China trade deal.

China has been the primary manufacturing hub for iPhones, with roughly 80% of U.S.-bound iPhones amounting to about 60 million units annually, originating from the mainland. The sharp redirection of orders to India highlights Apple’s determination in skirting the hefty tariffs imposed by the U.S. government on Chinese goods. President Donald Trump aims to bolster America’s manufacturing industries by implementing these tariffs, but large corporations are clearly finding alternative solutions to circumvent them.

China Strengthens Its Strategy on India-Made iPhones

Apple has manufacturing bases in several countries, including the Netherlands, Britain, and the Czech Republic. However, the company has recently grown increasingly dependent on India’s manufacturing expertise. Despite several warnings from Trump to stop producing iPhones in India, CEO Tim Cook seems to be happily ignoring them. The company is said to have made special arrangements at the Chennai airport in Tamil Nadu state, its key iPhone export hub, to shorten customs clearance time from 30 hours to just six hours.

Between March and May 2025, Foxconn exported iPhones worth $3.2 billion from India, with a majority destined for the U.S. market. In May alone, India exported $1 billion worth of iPhones to the U.S., following a record $1.3 billion in March. Notably, in the first five months of this year, Foxconn has already shipped India-made iPhones worth $4.4 billion to the U.S., compared to exports of $3.7 billion for the whole of 2024. In March, Apple sent six special chartered flights from India to the U.S., exporting the bulk of iPhones 13, 14, 16 and 16e models worth roughly $2 billion, just before Trump’s global tariffs were expected to take effect.  

Apple’s other Indian supplier, Tata Electronics, also exported 86% of its March and April iPhone production to the U.S., a significant increase from the 52% average recorded last year. Although India is promoting itself as a smartphone manufacturing hub, it still incurs high import duties on certain components, making manufacturing more expensive in India compared to Vietnam and Mexico.

Is Apple a Good Stock to Buy Now?

Analysts remain divided on Apple’s long-term stock trajectory due to ongoing tariff-related uncertainty. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, nine Holds, and four Sell ratings. Also, the average Apple price target of $226.94 implies 13.9% upside potential from current levels. Year-to-date, AAPL stock has lost 20.3%.

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