India has now replaced China as the top exporter of iPhones sent to the United States, according to a report from Omdia.
According to the latest information, almost three million iPhones built in India were shipped to the US in April. On the other hand, fewer phone shipments from China were reported, down by 76% to 900,000 units.
The announcements arrive just as Apple is feeling the heat from President Donald Trump’s threat to add a 25% tariff to iPhones that are not built in the U.S.
Days before the report came out, President Trump called on Apple CEO Tim Cook to instead build Apple products in the United States and Cook responded by determining to move away from China and produce more devices in the US.
Apple has long readied itself for problems caused by disruptions in trade. It is likely that the rise in April happened because of people stocking up in advance of the increased tariffs, according to Le Xuan Chiew, research manager at Omdia.
The iPhone is sold in more than 220 million units per year, mostly in the US, China and Europe, according to Reuters. Without a fluid supply chain in the US, an Apple iPhone can go for as much as $3,500 or about Rs 2,98,000, according to IANS. About 20 million phones are being sold in the country every three months right now.
India is now an important link in Apple’s worldwide supply chain. Taiwanese contract manufacturer Foxconn assembles iPhones made in India in its factory in Tamil Nadu. Pegatron Corp’s Indian manufacturing is driven by Tata Electronics which is the other key company involved. It is being reported that Tata and Foxconn will build new plants to help meet the increased demand for iPhones.
Even so, specialists maintain that it will take a while for India to handle all the American requirements. A rise in production in India will support employment growth and also stimulate economic growth.
According to Mr Cook, in the June quarter, Apple will make most of the iPhones destined for the US in India and produce most of the devices for the rest of the world in China because of unclear US tax tariffs. Although the Trump government is charging a 30% tariff on Chinese-made iPhones, they only tax Indian-made products at 10%.
According to Dan Ives, head of technology research at Wedbush Securities, making iPhones solely in the US is a fantasy. Ives explained that if Apple tried to build its Asian supply chain in the US, it would face immense cost hikes.
It would take Apple at least three years and cost $30 billion just to move 10% of its supply chain to the US, according to analysts.
Even with India’s benefits, Apple comes under increased pressure from both Beijing and Washington. China is unhappy with Apple’s decision to shift some of its manufacturing and Trump has blamed Apple for not assembling iPhones in the US. “I previously informed Tim Cook of Apple that their iPhone’s intended for the United States of America will be built domestically, not in India or anywhere else,” Trump wrote on Truth Social last week.
Nevertheless, it’s questionable if it makes sense or is feasible for the US to make all iPhones. Wedbush Securities analyst Dan Ives says that making iPhones in the US would cost too much for Apple, with prices soaring to as much as $3,500.
Although Apple has won a significant victory with India’s rising manufacturing sector, analysts say the progress could slow down later in the current year. Yet Apple’s recent $1.5 billion plan by Foxconn in India means they are moving away from a major reliance on China and putting more emphasis on India.
India’s iPhone exports to the U.S. soared an estimated 76%. But Trump, Beijing won’t make further growth easy
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According to an estimate from a technology market analyst firm, Apple shipped 76% more iPhones from India to the U.S. in April than it did the same month last year. The rise is happening as Apple moves forward with its “made in India” approach, a step that analysts think will draw criticism from President Trump and Beijing.
According to Canalys which is now part of Omdia, about 3,000,000 iPhones were delivered to the U.S. from India in April. Chinese shipments during the same period fell hard, dropping roughly 76% compared to last year, to reach just 900,000.
In making its smartphone estimates, Omdia uses customs records and channel data from those who distribute iPhones.
According to Le Xuan Chiew, a research manager at Omdia, the April results show how Apple is responding to the tariffs imposed by Washington on China, where most iPhones are produced.
“The current issues with China are the sort Apple has been trying to get ready for and in fact, it was the Covid pandemic that encouraged the company to first focus heavily on investing in Indian supply chains,” he explained.
Omdia reports that India shipped more iPhones to the US than China in March. The numbers began to rise in the days before Trump placed his “reciprocal tariffs” on April 2. Chiew attributed the unusually large number of shipments in that month to the company stockpiling.
Apple CEO Tim Cook confirmed in early May that most iPhones for the U.S. will be made in India, even though Trump had suspended tariffs on consumer electronics.
During Trump’s presidency, those who import iPhones from China are charged a 30% tariff,whereas others import them from India or elsewhere for only 10% without tariffs.
Omdia’s Chiew predicts that while Apple’s supply chains proved adaptable in March and April, iPhone shipments will slow down for the remainder of 2021.
It’s not estimated that India’s manufacturing will expand rapidly enough to cover all the needs of the U.S. “It’s too soon yet,” he told me, explaining that the iPhone 16 Pro is just entering shipments from Apple.
According to Omdia, each quarter, the U.S. buys about 20 million iPhones and India will not reach that level until 2026.
Daniel Newman, head of Futurum Group, observes that it’s the assembling phase that shipment statistics indicate, not the full process involved in producing a device.
They did not need to put in much effort to shift the bulk of the final assembly from China to India, since the major sub-assemblies continue to be produced there, he explained.
The pushback received from Washington and Beijing
Experts indicate that India’s plans to add more iPhone capacity may face limits because of Washington and Beijing’s opposition to Apple’s actions on tariffs.
As Apple’s strategy pleases Wall Street, Newman cautions that it could anger Trump, as it does not fit the goals of his tariffs.
On Friday, Trump warned via social media that he would put a 25% tariff on all iPhones shipped to the U.S. because he wants future iPhone sales in the U.S. to be built at home, not in foreign countries.
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