Apple has shipped more iPhones from India to the U.S. than from China for the second consecutive month, marking a significant shift in its production strategy and tariff policies. In April 2025, shipments from India rose 76% year over year, reaching an estimated three million units. Meanwhile, shipments from China fell 76%, dropping to about 900,000 units. This milestone signals Apple’s accelerated effort to diversify its supply chain away from China.
Shift in Supply Chain Strategy
The surge in shipments from India reflects Apple’s focus on reducing dependence on Chinese manufacturing amid rising geopolitical tensions and renewed U.S. tariffs on Chinese imports. Apple began expanding its Indian supply chain during the pandemic, and the recent trade measures have added urgency to that plan.
According to Canalys data, India first surpassed China in iPhone exports to the U.S. in March 2025, with April’s figures reinforcing the trend.
Apple CEO Tim Cook confirmed in early May that most iPhones sold in the U.S. will eventually be assembled in India. However, India still relies heavily on Chinese sub-assemblies, and the transition mainly involves shifting the final assembly stage.
Daniel Newman, CEO of Futurum Group, explained that moving final assembly to India required relatively little adjustment, but the majority of components continue to come from China.
Challenges Ahead of Apple
Despite the growth, Apple faces several hurdles. U.S. tariffs and political pressure from Washington complicate the expansion of India’s production capacity. President Trump recently threatened a 25% tariff on iPhones made in India, demanding they be produced in the U.S. at home instead. China has also restricted the export of key manufacturing equipment and talent necessary for Apple’s Indian suppliers.
Costs in India remain higher than in China by 5% to 8%, but Apple offsets this with tax incentives and expedited shipping routes known as green corridors. Analysts anticipate that by 2026, India will be able to meet the U.S. demand of approximately 20 million units per quarter.
According to Dan Ives of Wedbush Securities, moving full iPhone production to the U.S. is unrealistic. He says Apple will continue investing in India despite short-term political pressures, viewing India as critical to its long-term supply chain stability.