Apple (AAPL, Financials) ramped up iPhone shipments from India to the U.S. in April, with exports rising 76% year over year to about 3 million units, according to Omdia. Over the same period, shipments from China fell 76% to 900,000, showing Apple's shift away from China as trade tensions grow.
The company began expanding production in India during the pandemic, and for the first time in March, India overtook China in iPhones sent to the U.S. The surge followed Apple's stockpiling ahead of new tariffs announced by President Donald Trump on April 2. Though iPhones were exempted from those tariffs by April 11, CEO Tim Cook reaffirmed plans to make India the main base for U.S.-bound production.
Chinese-made iPhones still face a 30% tariff, while Indian ones are taxed at 10%. Analysts say India's factories are ramping up, but won't match U.S. demand—about 20 million units per quarter—until at least 2026. Most sub-assembly still happens in China, so full independence is a way off.
Trump has also threatened a 25% tariff on all iPhone imports, demanding they be made in the U.S. Meanwhile, China is reportedly making it harder for Indian suppliers to access high-end tools and talent. Wedbush analyst Dan Ives called domestic iPhone production a “fairy tale” and said India remains Apple's “life raft” as it navigates political pressure.
