Apple’s iPhone Exports from India Hit 97.6% in March Amid Soaring China Tariffs

In a remarkable shift that could reshape the global electronics supply chain, iPhone exports from India to the United States soared to a staggering 97.6% of Apple’s total iPhone exports in March 2025, according to a new report by S&P Global Market Intelligence. This strategic surge came as Apple moved swiftly to protect itself from escalating US-China trade tensions and looming tariffs under the Trump administration.

Apple’s pivot away from China was spurred by the US government’s announcement of a sweeping 10% base tariff on imports from most countries and the imposition of additional reciprocal tariffs targeting nations with a trade surplus with the US, including China and Vietnam, two electronics manufacturing giants.

While smartphones and laptops have temporarily been exempted from the reciprocal tariff, special tariffs targeting these products are expected to be unveiled in May. Foreseeing potential disruption, Apple acted decisively—ramping up production in India and diverting exports from other regions to the US market.

A 219% Leap: India Takes Centre Stage

According to S&P, iPhone exports from India spiked 219% in March alone. The tech giant exported 4.43 million iPhones to the US in March, a jaw-dropping rise from 1.71 million units in February. This move not only helped Apple preempt tariff shocks but also reinforced its growing dependence on India as a production powerhouse.

“In March, Apple primarily redirected units originally bound for markets like Japan, Czech Republic, Australia, and Israel to the US,” the report noted. For example, iPhone exports to Japan dropped from 170,000 units in February to just 38,000 in March, and exports to the Czech Republic plunged from 141,000 to 30,000 units.

Apple’s Big Bet on India

With iPhone exports from India now dominating its global export map, Apple is reportedly planning to completely shift production for the US market to India by 2026, marking a historic decoupling from Chinese manufacturing.

“This move will require deep collaboration with contract manufacturers like Tata Electronics, Pegatron, and Foxconn Hon Hai,” S&P said. “India’s production-linked incentive schemes and streamlined investment policies will be vital, but actual implementation will take time.”

India’s electronics manufacturing sector has gained significant momentum, but it still faces critical challenges. Apple’s production lines in India heavily rely on Chinese components, which accounted for 71.3% of shipments from China in Q1 2025. This dependency underscores the complexity of fully decoupling from China in the short term.

Nevertheless, India’s position in the global electronics supply chain is strengthening. The construction of new facilities—Tata Electronics in Hosur and Foxconn’s $2.6 billion plant in Bengaluru, set to open this May—are expected to significantly boost export capacity.

Shifting Global Supply Chains

S&P warned that if high tariffs on China persist, other electronics firms may also seek alternate production bases, possibly leading to “regionalisation without localisation.” While China still commands 76.6% of global electronics manufacturing, nations like India (8.4%), Vietnam (9.9%), and South Korea (1.2%) are gradually chipping away at its dominance.

A potential US-India bilateral trade agreement, expected by Q3 2025, could accelerate this shift. However, S&P also highlighted the risks, including labour unrest, infrastructural bottlenecks, and political uncertainties.

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