India has overtaken China to become the largest exporter of iPhones to the United States, marking a significant shift in Apple's global supply chain. According to a recent report by market research firm Omdia, nearly three million iPhones manufactured in India were shipped to the US in April, a 76% year-on-year increase. In contrast, iPhone shipments from China plummeted by 76% to just 900,000 units during the same period. This is the first time India has consistently outpaced China in supplying iPhones to the American market.

This development underscores Apple's accelerating pivot away from China, driven by shifting trade policies and geopolitical tensions. The rise in Indian exports follows the reintroduction of tariffs on Chinese imports, with Chinese-made iPhones currently facing a 30% import duty, compared to a base 10% tariff on those assembled in India. While iPhones were briefly exempted from these tariffs in April, Apple had already begun stockpiling US-bound inventory, boosting exports from India.

Apple's strategic move to diversify its manufacturing base began during the COVID-19 pandemic and has gained urgency in response to these tariffs. This transition is part of a long-term effort to mitigate supply chain risks and reduce reliance on a single country. Apple CEO Tim Cook has confirmed that most iPhones sold in the US will be made in India in the June quarter.

India's emergence as a key hub in Apple's global supply chain is supported by increasing investments in the country's manufacturing ecosystem. India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is another key manufacturer. Both Tata and Foxconn are building new plants and adding production capacity to increase iPhone production.

Despite these advances, experts caution that India's current manufacturing capacity is not yet sufficient to meet the full demand for iPhones in the US, which is around 20 million units per quarter. Omdia estimates that India may only be able to match this level of output by 2026.

The shift in iPhone exports also reflects broader economic and political factors. Former US President Donald Trump has urged Apple to manufacture iPhones in the US, even threatening to impose a 25% tariff on imported iPhones if they are not made domestically. However, replicating Apple's complex Asian supply chain in the US would result in massive cost increases. Market watchers estimate that it would take Apple at least three years and a $30 billion investment to move just 10% of its supply chain to the US.