Foxconn Dodges China Tariffs by Shipping 97% of India-Made iPhones Straight to the U.S.

Foxconn''s latest chess move? Rerouting nearly all iPhone production from India to the U.S.—sidestepping Beijing''s trade war crossfire.

The tariff tango

With 97% of India-assembled iPhones now bypassing China entirely, Foxconn''s supply chain pivot reads like a corporate thriller. No more begging for tariff exemptions—just clean, surgical avoidance.

Wall Street''s predictable reaction? Champagne corks popping while analysts pretend they saw this coming all along. Because nothing says ''free market'' like billion-dollar companies playing geopolitical hopscotch.

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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 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%.