Hajra Naz
Job seekers stood outside the Foxconn factory in Sriperumbudur, near Chennai, where iPhones are assembled for Apple. The scene captured a pivotal moment in India’s growing role in Apple’s global supply chain.
President Donald Trump’s decision to impose a 25% tariff on Indian goods will do little to slow India’s rise as a key hub for iPhone manufacturing—even if it means U.S. consumers could end up paying more for their devices, according to analysts and industry executives.
Apple’s India Strategy
Apple has already shifted its India-based exports almost entirely toward the U.S. market. Between March and May, nearly all of the $3.2 billion worth of iPhones exported by Foxconn from India were shipped to the United States.
“It’s too early to say” whether Trump’s latest move—or potential changes to his stance in the future—will force Apple to alter its India manufacturing plans, an industry executive familiar with the strategy noted. “These plans are made with a longer window.”
Read More: India has overtaken China as the largest smartphone exporter to the US
Trump’s Tariffs
On Wednesday, Trump announced the new 25% tariff on Indian imports, effective Friday. The decision rattled Indian businesses, though some analysts viewed it as a bargaining tactic rather than a long-term policy shift.
For Apple, however, India has become central to its diversification strategy, helping the company reduce dependence on China amid rising geopolitical tensions.
India Surges Ahead in iPhone Supply
According to Counterpoint Research, India supplied 71% of all iPhones sold in the U.S. between April and June, up dramatically from 31% a year earlier. At the same time, shipments from China declined, underscoring the shift in Apple’s global supply chain.
Despite the newly announced tariffs, analysts say India will continue to remain cost-competitive for iPhone manufacturing. Costs have fallen compared to when Apple first began production in the country eight years ago, narrowing the gap with China.
Factors such as growing local component production, federal government incentives, and wages nearly half those in China have positioned India as one of the top two iPhone-producing nations, alongside China.
“Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved,” said Tarun Pathak, Research Director at Counterpoint. “It is expected to be business as usual, especially with a resilient supply chain like Apple.”
Trump’s Criticism of Apple
Trump has long criticized Apple for producing iPhones sold in the U.S. overseas. His administration has floated threats of company-specific tariffs, but obstacles such as high costs, technological limits, and legal challenges have prevented sweeping action.
In May, Trump recalled telling Apple CEO Tim Cook
“We put up with all the plants you built in China for years … we are not interested in you building in India; India can take care of itself.”
Read More: Bad News for India, Trump Says Apple’s CEO to Manufacture in US instead of India
Apple’s Likely Response
Analysts say Apple will likely absorb the higher costs tied to tariffs rather than disrupt its India expansion.
Faisal Kawoosa, Chief Analyst at Techarc, explained
“Given that sales in the U.S. are largely operator-driven and sold as part of bundled plans, it might simply mean a few more dollars added to monthly payments instead of a heavy upfront cost for consumers,”
In short, while Trump’s tariffs may pose new challenges, Apple’s long-term commitment to India’s manufacturing ecosystem appears to be strong. The company is betting that India’s rising importance in the supply chain far outweighs short-term political and economic hurdles.
