Apple Reroutes 97% Of Foxconn iPhone Exports From India To US Between March And May As Trump Threatens 25% Tariff On Non-US-Made iPhones: Report

Apple Inc. AAPL has reportedly increased its iPhone shipments from India to the U.S. in the past few months, as the tech giant moves to protect its U.S. sales from the impact of escalating tariffs on China-made goods.

What Happened: Between March and May, 97% of iPhones exported by Foxconn, also known as Hon Hai Precision Industry Co., Ltd HNHAF, from India were sent to the U.S., according to customs data reviewed by Reuters.

That's a steep jump from the 2024 average of just over 50%, signaling a major supply chain realignment. The surge follows President Donald Trump's renewed push for protectionist trade measures.

Last month, Trump publicly criticized Apple's production shift to India, recalling that he told CEO Tim Cook, "We are not interested in you building in India, India can take care of themselves, they are doing very well, we want you to build here."

The president also threatened the tech giant with a 25% tariff on iPhones made outside the U.S.

In the first five months of 2025, Foxconn shipped $4.4 billion worth of iPhones from India to the U.S., already surpassing 2024's total of $3.7 billion, the report said.

Apple even chartered planes in March to fly $2 billion worth of iPhones directly from India to American consumers.

Why It's Important: Apple's pivot reflects an urgent response to mounting geopolitical and trade risks, particularly with China. As U.S. tariffs on Chinese imports soar, Apple is increasingly relying on India to maintain access to the crucial U.S. market.

Counterpoint Research analysts expect 25% to 30% of global iPhone production will come from India in 2025, up from 18% in 2024, the report added.

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Apple reported fiscal second-quarter revenue of $95.36 billion, surpassing analysts' expectations of $94.53 billion. The tech giant also delivered earnings of $1.65 per share for the quarter, slightly ahead of the projected $1.63 per share.

iPhone sales reached $46.84 billion, up from $45.96 billion during the same period last year.

Historically, Apple has sold over 60 million iPhones annually in the U.S., with approximately 80% of them manufactured in China, the report said.

Price Action: Apple shares have fallen 18.31% since the beginning of the year and are down 7.02% over the past 12 months. During Thursday's regular trading session, the stock edged up 0.21%, but slipped 0.31% in after-hours trading, according to Benzinga Pro data.

Benzinga's Edge Stock Rankings indicate a consistent downward trend for Apple across short, medium and long-term timeframes. More detailed performance data is available here.