Apple Ramps Up India Manufacturing As US iPhone Imports Surge 76% In April, While Shipments From China Plunge

Benzinga
2025.05.28 08:06
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Apple Inc. is shifting its manufacturing focus from China to India, with U.S. iPhone shipments from India rising 76% year-over-year in April, totaling 3 million units. In contrast, shipments from China fell 76% to 900,000 units. This change is a response to U.S. tariffs, as imports from China incur a 30% duty compared to 10% from India. Despite challenges, analysts believe Apple is well-positioned to manage tariff costs. India is expected to increase its share of global iPhone production from 18% in 2024 to 32% in 2025, although it may not meet U.S. demand until 2026.

Apple Inc. AAPL accelerated its manufacturing pivot from China to India as U.S. iPhone shipments from the country jumped 76% year-over-year in April, reaching 3 million units.

What Happened: India’s iPhone exports to the U.S. soared 76% in April compared to the same period last year, according to data from Canalys, now part of Omdia. U.S. iPhone shipments from India reached approximately 3 million units, while Chinese shipments plummeted 76% to just 900,000 units over the same timeframe, reported CNBC.

The surge reflects Apple’s aggressive response to Washington’s tariff policies. iPhones imported from China face an additional 30% duty under current tariffs, while India faces the baseline 10% rate. President Donald Trump exempted consumer electronics from reciprocal tariffs on April 11, but maintained pressure on Apple to manufacture domestically.

Le Xuan Chiew, Omdia research manager, noted Apple’s preparation for trade disruptions began during the COVID-19 pandemic. The company stockpiled inventory ahead of Trump’s April 2 tariff announcement, contributing to unusually high March shipments.

Why It Matters: The shift positions Apple to navigate escalating trade tensions but faces significant challenges. Trump threatened a 25% tariff on all iPhone shipments Friday, demanding domestic manufacturing. JPMorgan analyst Samik Chatterjee maintains an Overweight rating, stating Apple is “well positioned” to absorb tariff costs through modest price increases of approximately $50 per device.

Apple recently invested $1.5 billion through Foxconn for display module production near Chennai, despite Trump’s criticism of Indian expansion. Ming-Chi Kuo argues that absorbing tariffs remains more profitable than U.S. manufacturing relocation.

India contributed 18% of global iPhone production in 2024, projected to reach 32% in 2025, per Counterpoint Research. However, Omdia estimates India won’t match U.S. quarterly demand of 20 million units until 2026.

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