Foxconn Ships 97% of India-Made iPhones to US as Apple Dodges China Tariffs

Foxconn’s iPhone exports are now directed almost entirely to the United States, with 97% of Indian-made iPhones heading to American markets. According to Business Standard, during these three months, shipments reached a value of $3.2 billion, with approximately 97% bound for the United States, representing a dramatic increase from the 50.3% monthly average seen throughout 2024. This strategic move comes as Apple seeks to navigate potential trade restrictions and tariff challenges.

The shift marks a major change in Apple’s global supply chain, reflecting how the tech giant is adapting to shifting trade policies and geopolitical tensions. This development highlights India’s growing importance as a manufacturing hub for Apple products.

Foxconn iPhone Exports Reach Record Highs

Foxconn’s iPhone exports from India have reached unprecedented levels in 2025. Between March and May 2025, Foxconn exported iPhones worth $3.2 billion from India, with 97% going to the United States.

The shift highlights Apple’s effort to avoid high U.S. tariffs on Chinese imports. Previously, iPhones made in India were mainly shipped to countries like the Netherlands, the Czech Republic, and the UK. Currently, most of them are being sent to the U.S. This change comes as the U.S. moves toward imposing even steeper duties on Chinese goods. On Wednesday, President Donald Trump stated that China could face tariffs of up to 55% if a proposed plan to reduce current triple-digit duties is approved.

In May alone, Foxconn shipped nearly $1 billion worth of iPhones from India to the US. This single-month figure demonstrates the scale of the current export operation and its strategic importance to Apple’s business.

Strategic Move as Apple Avoids China Tariffs

This export pattern shows how Apple is avoiding tariffs on China through strategic manufacturing decisions. The company has been diversifying its production base to reduce dependence on Chinese manufacturing facilities. India has emerged as a key alternative location for iPhone assembly.

Trade tensions between the US and China have created uncertainty around potential tariffs on Chinese-made products. By increasing production in India, Apple creates more flexibility in its supply chain. This approach helps the company manage potential cost increases from trade restrictions.

Apple Import Tax Avoidance Through Diversification

Apple’s import tax avoidance strategies have become increasingly sophisticated in recent years. The company has invested heavily in manufacturing facilities outside China to create more options. India represents a major component of this diversification strategy.

The first five months of 2025 have already seen $4.4 billion in iPhone exports from India to the US, surpassing the entire 2024 total of $3.7 billion. This rapid growth shows how quickly Apple can scale operations when needed.

In May 2025 alone, Foxconn’s factories in India shipped nearly $1 billion worth of iPhones to the U.S., marking the second-highest monthly total on record, just behind the $1.3 billion peak in March. In the first five months of 2025, Foxconn has already sent $4.4 billion worth of iPhones to the U.S., exceeding its entire 2024 total of $3.7 billion.

Apple Supply Chain Realignment Continues

The current export patterns highlight Apple’s supply chain realignment efforts that began several years ago. The company has been systematically reducing its dependence on any single country for production. This approach helps manage various risks, including trade disputes and geopolitical tensions.

India has become a cornerstone of this diversification strategy. The country offers skilled workers, competitive costs, and supportive government policies. Apple’s success in India demonstrates the effectiveness of its supply chain management and provides significant competitive advantages in the global smartphone market.