New Delhi— Tech giant Apple is reportedly planning to increase its iPhone exports from India to the United States in a bid to avoid steep tariffs on Chinese goods, according to a report by The Wall Street Journal.
The move is being considered as a temporary measure to offset the rising costs of importing products from China, where most of Apple’s manufacturing currently takes place.
This development follows the U.S. government’s recent imposition of a 34% tariff on Chinese imports, in addition to an earlier 20% duty. In response, China slapped a 34% tariff on U.S. goods, escalating already tense trade relations between the two countries.
U.S. President Donald Trump has further warned that tariffs could rise to 50% if China does not agree to scale back its trade stance.
In contrast, goods imported from India face only a 26% U.S. tariff, significantly lower than the rates imposed on China and several other Asian countries. This makes India a more cost-effective alternative for U.S.-bound exports — at least for now.
However, shifting production from China to India is not without challenges. Apple’s iPhone business accounts for nearly half of the company’s total revenue and remains heavily dependent on China’s established manufacturing ecosystem. Investors have expressed concerns over the risks of relocating such a critical portion of Apple’s supply chain.
In the past three trading days, Apple’s stock has fallen by over 19%, marking the company’s worst three-day performance in nearly 25 years, the report noted.
Should U.S. tariffs on Chinese goods persist, Apple could face an additional $300 in hardware costs for each iPhone. Currently, the hardware cost of an iPhone is about $550, while the retail price averages around $1,100.
In India, iPhones are manufactured by Foxconn and the Tata Group. To support expanded exports to the U.S., Apple will need to further scale its supply chain and production capacity in India, the report stated.
India has already become a key player in Apple’s global strategy. In January 2025 alone, Apple exported iPhones worth approximately ₹19,000 crore from India — its highest-ever monthly export figure. This represents a 30% increase compared to the same period last year.
In fact, Apple exported over ₹1 lakh crore worth of iPhones from India in just the first 10 months of FY2024–25 (April 2024 to January 2025), according to industry data.
This record-breaking performance has been driven largely by the Indian government’s Production-Linked Incentive (PLI) scheme, which has incentivized large-scale manufacturing and export growth in the country. (Source: IANS)
