Apple To Maintain India iPhone Manufacturing Plans Despite US Tariffs On Indian Imports: Report

US President Donald Trump's newly announced 25 per cent tariffs on Indian imports are unlikely to disrupt Apple’s growing dependence on India for iPhone production.

Between March and May, nearly all of the $3.2 billion worth of iPhones exported by Foxconn from India were shipped to the US, highlighting Apple’s realignment of Indian production to cater primarily to the American market.

India supplied 71 per cent of iPhones sold in the US between April and June 2025, up from 31 per cent in the same period last year—while Chinese shipments fell sharply, according to Counterpoint Research, news agency Reuters reported.

Tariffs Seen as Negotiation Move, Not Strategic Deterrent

The 25 per cent import duty, effective Friday, caused concern across Indian industry, though many experts view the move as part of Trump’s broader negotiation strategy.

An industry executive familiar with Apple’s operations, cited in the Reuters report, said it’s “too early to say” whether the tariffs or Trump's future stance will affect Apple’s long-term manufacturing plans in India, noting that such decisions are made with a “longer window.”

India Holds Cost Advantage and Strategic Importance

Apple is unlikely to shift course as India remains a cost-effective alternative to China.

Factors such as increasing local component supply, central government incentives, and lower wages—nearly half those in China—are helping to close the cost gap.

Apple began production in India eight years ago and has since positioned the country as one of its top two global iPhone manufacturing bases.

Further, the company can't make supply chain adjustments as new iPhone models are set to be launched soon.

Despite Trump’s repeated criticism of Apple for manufacturing abroad, including his direct remarks to CEO Tim Cook in May, the tech giant is expected to continue absorbing the cost increases rather than scaling back operations in India.

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