India becomes top exporter of iPhones to US, overtakes China
What's the story
India has surpassed China in iPhone shipments to the United States, a new report by Omdia has revealed.
The data shows a massive 76% year-on-year increase in iPhone exports from India to the US for April.
An estimated three million iPhones were shipped from India during the month, compared to China's 900,000 units—a significant drop of 76%.
Strategic shift
Apple's strategy to diversify manufacturing
The surge in Indian iPhone exports marks a major shift in Apple's supply chain strategy, which has been largely focused on China.
The company started ramping up its manufacturing capabilities in India during the COVID-19 pandemic and subsequent supply chain crisis.
This move is part of a long-term plan to diversify production amid rising tariffs and trade tensions between Washington and Beijing.
Trade implications
Tariff policies impact iPhone shipments
The change in iPhone export patterns also highlights the impact of tariff policies on Apple's business.
President Donald Trump's reciprocal tariffs, which came into effect on April 2, imposed a 30% duty on Chinese-made iPhones.
In contrast, imports from other countries including India were subject to a baseline rate of 10%.
Despite an exemption for consumer electronics announced on April 11, Apple's strategy in India has continued unabated.
Growth hurdles
Future challenges for India's iPhone manufacturing
Omdia's research manager Le Xuan Chiew has warned that India's manufacturing capacity isn't expected to keep pace with US demand.
The current quarterly demand for iPhones in the US is around 20 million units—a figure India is unlikely to match before 2026.
This could pose a challenge for Apple's supply chain strategy and future growth prospects in India.