NEW DELHI – Apple is accelerating its shift of iPhone production to India, a move that has proven highly successful.

According to a report by research firm Omdia, cited by the Economic Times, exports of India-made iPhones to the United States soared by 76% year-on-year, with 2.9 million units shipped in April 2025 alone.

This move is part of Apple’s strategy to diversify away from its heavy reliance on China, which is now grappling with geopolitical tensions and rising US import tariffs.

However, the shift has drawn sharp criticism from US President Donald Trump. Posting on Truth Social, Trump reiterated that Apple must manufacture iPhones within the United States.

He even threatened to impose tariffs of at least 25% on iPhones sold in the US but produced abroad—particularly in India.

“I have long told Tim Cook that iPhones sold in America should be made in America, not in India or elsewhere. If not, then Apple must pay a tariff of at least 25%,” Trump posted, as quoted by the Times of India on Tuesday (3/6).

Analysts, however, warn that Trump’s threat could come at a steep cost to US consumers. According to senior analyst Ming-Chi Kuo of TF Securities in Hong Kong, relocating iPhone assembly to the US could push the price of the iPhone Pro to over USD 3,000 (around IDR 45 million), a massive leap from the current price of around USD 1,119.

“In terms of profitability, it would be better for Apple to absorb the 25% tariff rather than shift production to the US. Labour and logistics costs in the US are significantly higher,” Kuo said.

While India is becoming increasingly important for Apple—even assembling high-end models like the iPhone Pro and Pro Max—China remains at the core of the tech giant’s supply chain.

“More than 200 of Apple’s key suppliers are based in China. Moving all of that to the US would be extremely complex,” noted analyst Sanyam Chaurasia of Canalys in an interview with the Economic Times.

India now accounts for 21% of global iPhone shipments in Q1 2025, a share expected to rise to 25–26% by year-end.

This surge is largely driven by the Indian government’s generous Production Linked Incentive (PLI) scheme, which has successfully drawn investment from major Apple partners such as Foxconn and Pegatron.

Foxconn alone reportedly added 10,000 new jobs at its Tamil Nadu factory in May 2025 to support Apple’s manufacturing expansion.

Amid the ongoing US-China trade tensions, Apple and other tech giants like Samsung and Google are also scaling up their operations in India to mitigate geopolitical risks.

Apple is now racing against the clock to meet demand ahead of the next iPhone launch in September 2025.

The big question now is: if Trump’s threatened tariffs become reality, will iPhones remain affordable for American consumers—or become luxury items accessible only to the wealthy? (EF/ZH)