Made-in-India iPhones to Sell Cheaper in the US Despite Tariffs, Apple to Remain Profitable
Apple has increased iPhone production in India to avoid US tariffs, boosting profits while helping India grow in exports and employment.
In the current global trade scenario, growing trade tensions between the US and China have pushed tech companies to revamp their supply chains. In this context, Apple has expanded iPhone production in India, helping the company bypass US tariffs and manage costs effectively.
Expansion of iPhone Production in India
Apple has significantly ramped up iPhone manufacturing in India, collaborating with partners like Foxconn, Tata Electronics, and Pegatron. In 2024-25, iPhone exports from India touched ₹2 lakh crore (approx. $24 billion), marking a 55% increase compared to the previous year. A majority of these iPhones were exported to the United States.
US Tariffs and Apple’s Strategy
The US government, under former President Donald Trump’s policies, imposed tariffs up to 125% on Chinese-made iPhones, while the tariff on Indian-made iPhones remains at just 26%. Taking advantage of this difference, Apple has boosted iPhone exports from India to the US. In March 2025, Apple airlifted around 600 tons of iPhones—approximately 1.5 million units—from India to the US.
Diversifying Apple’s Supply Chain
Apple CEO Tim Cook confirmed that in the April–June 2025 quarter, most iPhones sold in the US will be manufactured in India. The company aims to shift the entire iPhone production for the US market to India by 2026.
Benefits for India
Apple’s strategic move is yielding multiple benefits for India:
- Growth in Exports: iPhone exports from India hit ₹2 lakh crore in 2024-25, a 55% jump from the previous year.
- Job Creation: Apple’s suppliers are providing employment to over 150,000 people across India.
- Technological Advancement: Apple has increased its supplier base in India from 14 to 64, strengthening the local tech ecosystem.
Despite high tariffs in the US, Apple’s strategy to shift iPhone production to India has helped the company control costs and remain profitable. This move is proving advantageous for India as well, boosting its technology sector and export capacity.
Disclaimer
This article is based on publicly available news sources and analyses. It is intended for informational purposes only and should not be considered financial or business advice.
